Binance Coin (BNB) has achieved a new record high after more than three years, but it may face significant fluctuations in value.
In the last 24 hours, BNB has surged by 12%, currently trading at $705.8. Earlier today, it reached an all-time high of $711.56, marking a new milestone since May 12, 2021.
As a result of this price surge, BNB’s market cap has exceeded $100 billion, a level last seen in December 2021. Additionally, the daily trading volume of BNB, the native token of the largest centralized cryptocurrency exchange, Binance, has increased by 62%, reaching $4.18 billion.
Notably, Binance burned 1.94 million BNB tokens, valued at approximately $1.17 billion, on April 24, igniting a bullish trend for the asset. Currently, there are around 147.58 million BNB tokens in circulation.
According to Santiment’s data, BNB’s total open interest has spiked by 32.5% in the last 24 hours, rising from $525.66 million to $696.67 million. This sudden surge in open interest indicates highly volatile trading activity, as some traders are anticipating further price increases for the token.
Furthermore, the funding rate for BNB on Binance has decreased from 0.02% to 0.01% in the past 24 hours, suggesting an increase in traders betting on a price decline for BNB.
Santiment’s data also reveals that BNB’s Relative Strength Index (RSI) currently stands at 74, indicating that the token is overbought at its current price level, potentially leading some investors to seek short-term profits. To maintain a bullish trend, BNB’s RSI would need to drop below the 50 mark.
Given the sudden rise in open interest and the declining funding rates, high price volatility is anticipated for BNB, which could result in a significant amount of liquidation.
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