Binance Coin (BNB) proved why it was able to regain the fourth position in terms of market capitalization from Solana (SOL).
At the time of writing, the coin is being sold at $482, representing a 10% increase. Dollar Street’s analysis predicts that the value could reach $500 soon.
The price of BNB reached a two-year high despite fluctuations in the bear market. This may be due in part to the coin’s liquidity.
Liquidation levels indicate the prices that can trigger the automatic closure of current positions.
No potential gain to shorting the coin
As of this composition, BNB’s liquidation level demonstrated the way that the cost could ascend to $502.76 soon. In the event that the cost hits this level, shorts could encounter an elevated degree of liquidation.
Notwithstanding, the pointer uncovered that the crash could occur when the worth of the coin hit $490.
Consequently, it probably won’t be a decent exchange choice to open a short BNB position — particularly one with high influence. For the unenlightened, shorts are dealers who bet on a cost decline and expect to benefit from it.
The above-mentioned outline is also known as the Cumulative Liquidation Level Delta (CLLD). At present, the CLLD is positive which could potentially fuel a negative bias in terms of price action.
Should the CLLD positive state keep on ascending high, BNB could encounter a full backtrack once it raises a ruckus around town mental opposition.
BNB to $500 or the market is off-base
In case the coin bounces back, its next target could be to reach its all-time high. Additionally, according to Dollar Street’s analysis of the BNB/USD daily chart, the On Balance Volume (OBV) had increased at the time of this writing.
This suggested that the positive volume shut higher on the seventh of Spring than on the sixth.
Regarding the cost activity, it was a bullish sign, and the Directional Development Index (DMI) confirmed the OBV signal.
It is important to note that the Average Directional Index (ADX) plays a significant role in determining the price.
At the time of writing this, the ADX indicator (yellow line) was at 51.24. A reading above 25 indicates that BNB has strong areas for potential growth.
Since the +DMI outperformed the – DMI, it proposed that a critical cost increment was ahead. In an exceptionally bullish case, BNB’s cost could hit as high as $520.
In any case, a decrease in purchasing energy could drive the cost lower. According to a negative viewpoint, the coin could tap $430, however, the press time market feeling may not line up with this expectation.
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Source: AMBCrypto
