BNB achieves record-breaking all-time high amidst extremely unstable market conditions
Binance Coin (BNB) has achieved a new record high for the first time in more than three years, but the asset may experience significant volatility.
At the time of writing, BNB is up by 12% in the past 24 hours and is currently trading at $705.8. Earlier today, it reached an all-time high of $711.56, marking a new record since May 12, 2021.
As a result of this price rally, BNB’s market capitalization has surpassed the $100 billion mark, which was last seen in December 2021. Additionally, the daily trading volume of the Binance-native token has increased by 62%, reaching $4.18 billion.
It is worth noting that Binance, the largest centralized cryptocurrency exchange, burned 1.94 million BNB tokens, equivalent to approximately $1.17 billion, on April 24. This move has brought bullish momentum to the asset. Currently, there are approximately 147.58 million BNB tokens in circulation.
Data from Santiment reveals that the total open interest for BNB has surged by 32.5% in the past 24 hours, rising from $525.66 million to $696.67 million. This sudden increase indicates highly volatile trading, as some traders are still betting on a further price rally for the token.
Furthermore, Santiment’s data shows that the BNB Binance funding rate has dropped from 0.02% to 0.01% in the past 24 hours. This decrease suggests that the number of traders betting on a decline in the BNB price has increased.
Moreover, the BNB Relative Strength Index (RSI), as per Santiment data, currently stands at 74. This indicates that BNB is overbought at its current price level, and some investors may opt for short-term gains.
To maintain its bullish momentum, BNB’s RSI would need to cool down below the 50 mark.
It is important to note that BNB is expected to experience high price volatility due to the sudden increase in open interest and declining funding rates. This could potentially lead to a significant amount of liquidation.
