A Cluster of Liquidity: Potential Cautions at $329 and Above
Recent market activity has revealed a concentration of liquidity from $329 and above, signaling a need for caution among traders.
Liquidation Warning for Traders Targeting $340
Traders eyeing the $340 mark could face liquidation risks if BNB experiences a retracement.
Funding Rate Impact on Price Movement
If the Funding Rate turns extremely negative, there is a possibility that the BNB price might head toward $400.
The Rise of Binance Coin (BNB) Amid Broader Market Surge
In the midst of the broader market uptrend, the price of Binance Coin (BNB) has also climbed. At the time of writing, BNB is valued at $326.93.
However, an observation by AMBCrypto suggests that traders holding long positions are at risk of liquidation.
For those unfamiliar with the crypto landscape, liquidation occurs when a leverage position is automatically closed, often due to insufficient margin balance or breaching the stop-loss area.
Cautionary Approach for Traders
AMBCrypto’s analysis of BNB’s Liquidation Levels reveals a cluster of liquidity ranging from around $329 to $340. Traders planning to open long positions may want to use low leverage, as high leverage between 25x to 100x could result in significant losses.
Data from HyblockCaptial also indicates signals from the Cumulative Liquidation Level Delta (CLLD), suggesting a potential full retrace with a bearish bias. If this scenario unfolds, BNB’s price might fall to $315.
On-chain volume data shows a $1 billion increase, possibly linked to growing interest in BNB.
Potential Scenarios for BNB Price Movement
If the coin price continues to rise alongside increased volume, BNB might surpass $327 in the short term. However, a reversal in price with a simultaneous volume spike could lead to a correction of up to 10% in the coming weeks.
Funding Rate Analysis
Examining the Funding Rate, it was found to be negative at press time, specifically -0.008%. Despite the negative reading, this suggests that shorts are not aggressively positioned, making a significant bounce more likely.
If the Funding Rate becomes extremely high, possibly hitting -0.01%, BNB’s price might rebound, potentially reaching $400.
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