Like many market participants, Binance Coin (BNB) also experienced a significant drop on Monday, with its price nearly falling below the $400 region. After two days, the altcoin showed a noticeable increase, nearing the psychological $500 price region. However, BNB has certain price levels it needs to surpass and maintain during this price movement.
Binance Coin Analysis
BNB’s liquidation heatmap indicates that the first liquidity concentration, which could eliminate short positions, is at $520.65, while for shorts, this level is marked at $463.23. In simpler terms, the heatmap indicator reveals the price levels where large-scale liquidations might occur.
An increase in intensity at a liquidation level causes the indicator’s color to change from purple to yellow. Generally, when there is a high liquidity pool at a level, the price tends to move in that direction as support or resistance.
If buying pressure increases upwards, BNB’s price could rise to $520. On the other hand, if the price moves downward, a scenario where BNB falls to $463.23 could occur.
What Will BNB’s Price Be?
Looking at the daily price chart, it was observed that bears took control of BNB’s price from July 31 to August 5. However, the bulls did not remain idle and responded with aggressive buying after a significant 31% correction, paving the way for a notable price recovery.
Despite the presence of upward potential, the Moving Average Convergence Divergence (MACD) remains in the negative region. MACD measures the momentum of a cryptocurrency and helps investors identify price trends, exit, and entry levels.
When the MACD value is positive, the momentum can be termed as bullish and may continue an upward trend. The negative divergence seen in MACD and BNB’s price may highlight the weakness of the upward trend. If this process continues, BNB’s sideways price movement may persist, likely finding buyers between $478.60 and $490.
However, an increase in buying pressures in BNB and the market could push BNB to the resistance level at $524.60. If the downtrend re-emerges, BNB’s price could fall to $404.30.
