Binance Coin (BNB) has achieved a new record high after more than three years, but the asset may experience significant fluctuations.
Within the last 24 hours, BNB has surged by 12% and is currently trading at $705.8. Earlier today, the asset reached an all-time high of $711.56, marking a new milestone not seen since May 12, 2021.
As a result of this price surge, BNB’s market capitalization has exceeded $100 billion, a level last seen in December 2021. Additionally, the daily trading volume of the Binance-native token has increased by 62%, reaching $4.18 billion.
In a noteworthy move, Binance, the largest centralized cryptocurrency exchange, burned 1.94 million BNB tokens valued at approximately $1.17 billion on April 24, igniting bullish momentum for the asset. Currently, there are approximately 147.58 million BNB tokens in circulation.
Recent data from Santiment reveals that BNB’s total open interest has surged by 32.5% over the past 24 hours, climbing from $525.66 million to $696.67 million. This sudden increase in open interest indicates highly volatile trading conditions as some traders continue to bet on further price increases for the token.
Furthermore, market intelligence platform data shows that the BNB Binance funding rate has decreased from 0.02% to 0.01% in the past day. This decline in funding rate suggests an increase in the number of traders speculating on a drop in BNB’s price.
The BNB Relative Strength Index (RSI) currently stands at 74, according to Santiment data. This indicates that BNB is overbought at its current price level, potentially prompting investors to seek short-term profits. To maintain its bullish momentum, BNB’s RSI would need to retreat below the 50 mark.
It is crucial to recognize that BNB is likely to experience significant price fluctuations due to the sudden rise in open interest and declining funding rates, potentially leading to a substantial amount of liquidation.
For more insights into the cryptocurrency market, analysts suggest that Bitfarm’s stock is undervalued and could see a 75% increase in value.