Binance Coin (BNB) Rises to $326.93 Amid Liquidation Risk; $400 Price Possible
BNB Liquidations: An Impending Threat Despite Bullish Sentiment?
The cryptocurrency Binance Coin (BNB) has joined the general market trend and continued to rise. At the time of reporting, the price of BNB was at $326.93. However, there are signs that traders who are going long may face a risk of liquidation.
What does liquidation mean in the crypto space?
For those unfamiliar with the crypto terrain, liquidation occurs when a leveraged position is automatically closed. This can happen if the trader’s margin balance is insufficient or if the price of the involved asset breaks through the stop-loss area.
No time for high-leverage bets
The analysis of BNB’s liquidation levels shows that there is a concentration of liquidity from about $329 to $340. Liquidation levels are estimated price points where large-scale liquidations could occur. For traders intending to open long positions, it might be advisable to use low leverage. A leverage of 25x to 100x could lead to total loss.
BNB could recover, but not now
If the coin price continues to rise and the volume increases, BNB could rise short-term above $327. However, should the price fall while the volume increases, BNB could lose its bullish momentum and correct its value by up to 10% in the coming weeks.
The role of the funding rate
The funding rate, i.e., the cost of holding an open position in the derivatives market, was negative at the time of reporting. A negative value indicates that the perpetual price (Perp price) is trading at a premium compared to the spot price. Despite the negative value, short positions were not aggressive, suggesting a possible recovery. However, should the funding rate become extremely high and possibly reach -0.01%, the price of BNB could rise again. In this case, an increase to $400 is conceivable.
Sources: HyblockCapital, Santiment
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| Symbol | BNB |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
|
| Cons |
|
| Price | $694.07 |
| 24h % | -1.93 % |
| 7d % | 3.63 % |
| 30d % | 5.67 % |
| 60d % | 20.28 % |
| 1y % | 117.94 % |
| Market Cap | $101,254,432,362.00 |
| Max. Supply | 200,000,000.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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