Binance Coin (BNB) experienced a notable decline at the start of the week, teetering close to the $400 mark. Following a recovery, the altcoin approached the significant psychological level of $500. BNB now faces critical price points it must surpass and sustain during this volatile period.
BNB’s Liquidity Insights
The liquidation heatmap for BNB highlights primary liquidity concentrations at $520.65 for eliminating short positions and $463.23 for shorting. This heatmap illustrates potential large-scale liquidation zones that may dictate future price movements.
The color on the heatmap shifts from purple to yellow with increasing intensity at these liquidation points. High liquidity pools often act as magnets for price, serving as support or resistance levels.
Future Price Projections
Daily charts indicate bearish dominance over BNB’s price from July 31 to August 5. However, a vigorous response from bulls followed, leading to a significant price recovery after a 31% correction.
Despite the upward potential, the Moving Average Convergence Divergence (MACD) remains negative, signaling potential weakness in the bullish trend. A continuing negative MACD could result in BNB trading sideways, with likely buyer interest between $478.60 and $490.
Key Inferences for Traders
– BNB’s price may rise to $520 with increased buying pressure.
– A drop to $463.23 is possible if the price moves downward.
– Resistance level at $524.60 could be tested if buying pressures intensify.
– Potential fall to $404.30 if the downward trend resumes.
An uptick in market and BNB-specific buying pressure could see the altcoin testing the resistance at $524.60. Conversely, a renewed downtrend might push BNB’s price down to $404.30.
