TL;DR
- BNB open interest has fallen by over $100 million, raising concerns among traders as it struggles to overcome resistance between $575 and $619.
- The decrease in open interest suggests that traders are closing short positions, which could alleviate the selling pressure on BNB’s price.
- The Relative Strength Index (RSI) shows signs of bullish consolidation, and if it stabilizes above 50, it could facilitate a rise in BNB’s price toward new highs.
BNB open interest has experienced a drop of over $100 million, generating concern among traders as the cryptocurrency price continues to struggle to break through a critical resistance area.
Currently, BNB is under a resistance block that ranges between $575 and $619, a threshold that has remained relatively stable over the last seven months. Despite signals of a potential bullish trend, there are still doubts about whether the cryptocurrency can break this barrier in the short term.
Optimistic Future for BNB?
The decrease in open interest indicates that many traders are closing their positions, primarily short ones, which in turn may reduce the selling pressure on the cryptocurrency’s price. Despite this drop, the funding rate remains positive, suggesting that traders expecting a price decline are choosing to exit the market. This situation could be beneficial for BNB, as a smaller number of short positions could provide the necessary momentum for the cryptocurrency to overcome resistance levels.
Resistances to Overcome
The Relative Strength Index (RSI) has also shown a promising outlook, sitting just above the neutral line. This indicator, which measures the speed and change of price movements, suggests that bullish strength is beginning to consolidate. If the RSI manages to stabilize above 50, it could indicate additional momentum in the price, facilitating its ascent toward new highs.
At the time of writing this article, BNB’s price is around $575, keeping it just below the aforementioned resistance block. The cryptocurrency has only broken the $619 level once in recent months, when it reached its all-time high of $721. If it fails to surpass the $575 level, it could experience a drop to $550, a scenario that could jeopardize its bullish trend.
Traders should remain vigilant regarding price behavior around critical levels, as any successful breakout could open the doors to a rally in the near future
