As the cryptocurrency market experiences a collective uptrend, Binance Coin (BNB) has also seen its price escalate, correlating with the overall market momentum. Nevertheless, this rise comes with increased risk for investors who have long positions, particularly due to the looming threat of liquidation. The current analysis highlights a specific zone, priced between $329 and $340, where BNB faces a high concentration of liquidation risk.
Insights on BNB’s Liquidation Points
Liquidation levels are critical thresholds where substantial liquidations can trigger, potentially impacting BNB’s value. However, reaching these price levels doesn’t necessarily preclude a short-term rise in BNB’s value. HyblockCapital’s data on cumulative liquidation level delta (CLLD) for BNB, which is an aggregate measure of the disparity between long and short liquidation levels, currently shows a positive trend.
Typically, such data points towards a potential downtrend leading to a price retraction to levels such as $315. BNB has also witnessed a surge in on-chain volume, crossing the $1 billion mark. This increased volume could suggest a spike in interest, which may propel BNB’s price to clear $327 shortly. Yet, if the price dips with a concurrent volume increase, BNB might see its upward momentum falter, potentially leading to a value correction of up to 10% in the coming weeks.
Santiment’s Funding Rate Analysis
From the perspective of Santiment, a cryptocurrency analytics firm, the funding rate for Binance Coin stands at -0.008%. This rate reflects the cost to maintain an open derivatives position. A negative funding rate, as in BNB’s case, suggests that its trading price might be elevated. Despite the negative implications of this data, it could also imply that short positions are currently not as aggressive, suggesting that a price bounce is plausible. Should this rate drop further, reaching -0.01%, a recovery in BNB’s price might occur, possibly even aiming for the $400 range.
