Since November 8, Binance Coin (BNB) has remained above $600 but has struggled to reach $700 or near its all-time high.
This stagnation has left many BNB Holders frustrated, raising the question: can BNB reach a new peak?
Binance Coin Experiences Low Volatility, Reduced Interest
While BNB trades around $612, the volatility surrounding it appears to be the reason why it remains above $600 but has not been able to increase its price significantly further.
When an asset is described as volatile, it means its price experiences large fluctuations in a short period of time. High volatility warns of great risks due to unpredictable price changes, but also opens the door to greater rewards.
Therefore, if buying pressure increases during periods of high volatility, asset prices can increase significantly. If this volatility occurs under conditions of high selling pressure, prices could drop sharply.
According to Santiment, BNB’s one-day volatility has decreased from its recent peak, indicating that price swings have decreased. This drop in volatility could make it difficult for BNB to make a significant breakout above $600, as the market may lack the momentum needed for a major bounce.
Additionally, Open Interest (OI), an indicator that measures the level of speculative activity around a cryptocurrency, has decreased. High OI typically signals increased capital inflows into contracts, which often indicates strong buying pressure that could potentially push prices up.
Conversely, a decline in OI indicates reduced liquidity in the market, often associated with selling pressure and the possibility of price declines. For BNB, OI has remained relatively stable since November 19, indicating that traders are hesitant to inject additional liquidity or participate in new contracts.
Furthermore, open interest is currently significantly lower at $532.08 million compared to November 14. This lack of speculative activity points to bearish market momentum, reinforcing the possibility that BNB price will struggle to surpass 600 USD.
BNB Price Prediction: High Chance of Falling to 551 USD
Similar to Open Interest, BNB price has followed a consistent trend since July, continuously facing resistance around $612. This points to a persistent effort by the bears to prevent the cryptocurrency from challenging its all-time high of $724.
Currently, with BNB trading near the same resistance level, a decline is possible. Historical patterns show that if the currency fails to break out, it could retreat to $551, as it has done before.
Similar to Open Interest, BNB price has followed a consistent trend since July, continuously facing resistance around $612. This points to a persistent effort by the bears to prevent the cryptocurrency from challenging its all-time high of $724.
However, a burst of volatility combined with strong buying pressure could challenge this outlook. In that case, BNB could not only sustain above $600 but also climb to $660—or even retest the $724 high.
