Binance Coin (BNB) has held above $600 since November 8, but has struggled to retest the $700 level or approach its all-time high.
This stagnation has left many BNB holders disappointed, raising the question: can the altcoin reach a new all-time high?
Binance Coin has low volatility and falling interest
While BNB trades around $612, the volatility surrounding the asset appears to be the reason why it has remained above $600 but has yet to make another substantial price increase.
Therefore, if buying pressure increases during high volatility, the price of the asset can increase significantly. If this volatility occurs during high selling pressure, the price can fall significantly.
According to Santiment, BNB’s one-day volatility has decreased since its recent peak, suggesting reduced price fluctuations. This drop could make it difficult for the altcoin to break above the $600 mark, as the market may lack the momentum needed for a significant move.
Binance Coin Volatility. Source: Santiment
Additionally, Open Interest (OI), a metric that tracks the level of speculative activity surrounding a cryptocurrency, has declined. When OI rises, it usually signals increased capital inflows into contracts, indicating strong buying pressure that could drive prices higher.
Conversely, a drop in OI reflects reduced liquidity in the market, often associated with selling pressure and a potential price decline. For BNB, OI has remained relatively stagnant since November 19, indicating that traders are hesitant to inject additional liquidity or take on new contracts.
Furthermore, the OI is lower by $532.08 million than it was on November 14. This lack of speculative activity indicates reduced market momentum, reinforcing the likelihood that the BNB price will struggle to break the $600 threshold.
Binance Coin Open Interest. Source: Santiment
BNB Price Prediction: Drop to $551 in Spot?
Similar to OI, BNB price has followed a consistent trend since July, repeatedly facing resistance around $612. This indicates persistent efforts by the bears to prevent the cryptocurrency from challenging its all-time high of $724.
Currently, with BNB trading close to the same resistance level, a drop is possible. Historical patterns suggest that if the coin fails to break through, it could retreat to $551, as it did previously.
Binance Coin Daily Analysis. Source: TradingView
However, an increase in volatility combined with strong buying pressure could challenge this outlook. In this scenario, BNB could not only hold above $600 but also rally towards $660 — or even retest the high of $724.
The article BNB faces stagnation: $700 still far away? appeared first on BeInCrypto.
