BNB Nears $600 with Futures Traders Skeptical

• Binance Coin (BNB) is reported to have liquidated several shorts following the recent surge from $557 to $583. 

• According to analysts, the asset could hit $600 in the coming days if buying pressure continues; however, BNB could fall to as low as $466 if sellers resist the upsurge.

Binance Coin (BNB) charges toward $600 as market sentiment flips in parallel with the broad market movement following the recent interest rate cut by the US Federal Reserve. According to our market data, BNB has surged by 2% in the last 24 hours and 5% in the last seven days to trade at $583 at press time. 

Regardless of the impressive run, Santiment data shows that traders remain skeptical about the longevity of this rally, as several of them bet on short positions. Looking at the BNB’s funding rate on September 19, it was observed that the reading was rotating in the negative zone at -0.001%. Per our analysts’ interpretations, this implies that traders bet for a decline rather than a rally.

However, the current surge from $557.11 to $583 shows that many of these shorts have been liquidated. 

More on the BNB Liquidation

According to historical data, BNB short liquidations reached around $1.3 million from September 16 to September 19. A Coinglass’ Open Interest (OI) chart also shows that BNB’s OI stood at $459 million on September 8. After a week, traders added $82 million to send the figure to $541 million, representing an 18% surge. Based on history, the simultaneous rise of both price and Open Interest indicates the creation of new long positions in the market. 

It is important to note that the short liquidation could continue as the asset’s moving average convergence/divergence (MACD) indicator shows an extension of bullish momentum. From the chart above, the MACD line is positioned above the signal line and zero line, indicating an impending rally. To analysts, BNB could target the $592.30 resistance level if the buying pressure continues. Once the asset rises above this line, it could move directly into the $637.80 zone. 

Conversely, the bullish thesis could be invalidated if bears resist the current move. In this case, BNB could be “dragged” down to find support at $466. 

Is the Bullish Movement Highly Probably?

Tracing the BNB’s price movement down to $544, we observed that the Chande Kroll Stop indicator was showing strong support around that area. At that point, a key resistance level was spotted around the near $560 mark. Fascinatingly, breaking that line has positioned the asset to breach the $600 zone and turn it into support. From our observation, BNB could find reaching the predicted point much easier than staging a bearish reversal. 

The current bullish sentiment occurs against the backdrop of regulatory challenges, including the recent lifetime ban of former Binance CEO Changpeng Zhao from operating or managing the exchange. As we formerly reported, CZ is serving a four-month prison term. However, BNB investors seem to have found consolation in the fact that CZ is still the exchange’s largest shareholder and could also be released this month, as hinted by CNF. 

Under the terms of the agreement, CZ is prohibited from any present or future involvement in operating or managing the business…As a shareholder, he will be looking at the performance of the company, and if things are not up to what he expects, as an investor, it’s always his right to replace or nominate a new board of directors or a new CEO. Shareholders can also always table a resolution.