- BNB finds strong support at $491, indicating potential for upward movement.
- A liquidation pool of 372k at $522.5 could fuel further price action.
Binance Coin (BNB) was showing signs of bullish momentum as it tests a crucial support level. BNB has been around the $491 support level.
This support level has proven to be a significant point of interest for its buyers. This was evidenced by the repeated bounces off this level. The strength of this support suggests that BNB may be gearing up for a bullish reversal.
BNB’s price chart showed the formation of a bullish pattern. Prices have respected an uptrend line over time, indicating a gradual buildup of buying pressure.
This further means that if the trend continues, the token may cross through key trendline resistance levels as it heads towards the $555 target.
Source: Tradingview
Will the BNB liquidation pool fuel the upward rally?
According to Coinglass liquidation data, there was a huge liquidation pool with 37.2K BNB at a price of about $522.
Historically, sudden accelerations in prices often occurred when such order concentration occurs during liquidations. As rates get close to this mark, short squeezes could cause it to hike rapidly up towards the target of $555.
Source: Coinglass
For months now, there seems to have been no significant change in the BNB Exchange open interest data. In spite of some price variations experienced recently, there has not been much change in open interest levels.
This indicates continued participation among its market players. The stability in interest could provide sufficient liquidity for any potential upward movement.
Source: Coinglass
Read Binance Coin (BNB) Price Prediction 2024-25
Eyes on $555
The current market price and on-chain metrics suggest that BNB might be in a bullish state, even though cryptocurrency remains highly unpredictable.
Strong support at $491 combined with a large liquidation pool at $522.5 creates an interesting environment for a possible bullish rally.