BNB Open Interest Falls $100 Million, Yet Price May Still Rise
2024-10-07

BNB price has been struggling to break past a resistance block that has kept the altcoin subdued for the last seven months. The current resistance ranges from $575 to $619, and while BNB has shown bullish signals recently, it remains uncertain if the coin can breach this barrier. 
A successful break could bring BNB to a four-month high, but traders are closely watching to see if the momentum will hold.
BNB Has Hopes for a Rally
Over the past few days, Open Interest (OI) in BNB has declined by more than $100 million, indicating that traders are closing their positions. Interestingly, the funding rate is still positive, which suggests that short traders are the ones pulling out.
This could be a bullish sign for BNB, as fewer short positions would mean less downward pressure on the price. A reduced number of shorts could give BNB the boost it needs to rise through the resistance.
While the drop in OI might seem like a bearish indicator at first glance, the positive funding rate points to optimism in the market. If traders continue to withdraw their short positions, BNB could have the chance to finally break past the $575 resistance level and continue its upward trajectory.
The overall macro momentum for BNB is looking promising, with the Relative Strength Index (RSI) showing signs of an uptrend. This indicator is currently just above the neutral line at 50.0, indicating that bullish momentum is building. Once the RSI flips 50.0 into support, it could signal further gains for the altcoin, driving its price higher.
As long as the bullish momentum continues, BNB may have a shot at breaching $575 and maintaining its upward trajectory. The critical test will be whether the momentum can hold long enough to push BNB through the $619 resistance level.
BNB Price Prediction: Strength Required
At present, BNB is trading at $567, sitting just below the key resistance block between $575 and $619. Over the past seven months, BNB has only breached $619 once, when it reached its all-time high (ATH) of $721. Breaking through this resistance would be a significant victory for the altcoin.
Given the current factors, a breach of the $575 level seems likely, but pushing past $619 may prove difficult in the short term. As Short-term profit booking is expected, traders should be cautious as this level may act as a ceiling.
If BNB fails to breach $575, a drawdown to $550 could occur. Losing this support would invalidate the bullish outlook and potentially lead to further declines in price.