Over the last 24 hours, the price of Binance Coin (BNB) has increased by 5%, indicating a steady upward movement. BNB, which is exactly that broke the infamous $600 barrieris attracting market attention due to signs of bullish momentum.

However, data at Checking coins suggests that BNB is trading approximately 20% below its expected price for next month. This undervaluation may therefore indicate earnings potential in the near future if this trend does not change soon.

Binance Coin: mixed sentiments and cautious optimism

BNB’s technical data indicates cautious optimism about market sentiment. The Relative Strength Index (RSI) remains consistently around 50, indicating balanced sentiment that is not subject to significant pressure from buyers or sellers.

This neutrality in itself tells us that the market is not overheating, and therefore BNB can go up in both directions without a clear, distinguishing trend. Another very critical indicator to monitor is the Chaikin Oscillator, which is currently -35,000. So there is virtually no accumulation of purchases.

Meanwhile, absent a shift in market sentiment that could bring more buyers into the fray, the lack of capital inflows could be what holds BNB back from further gains.

BNB trading volume increases by 31% in 24 hours, which is why market activity and interest are increasing. Investor interest can be seen from the market capitalization volume ratio, which is currently 2.46%, and based on this growth, but what is tested is whether the interest is conducive to price growth.

Brief-term trading pressures and volatility

The BNB liquidation map shows concentration zones that may threaten price stability in the near term. The potential for price volatility exists if BNB exceeds $590; tiny positions are heavily concentrated at $583.

This could push out these tiny positions and ultimately have a domino effect that could push prices higher. Long liquidations are triggered when the price falls below $570. This means that if the price of BNB falls, selling may be accelerated as the positions come to an end.

These levels are critical points that a short-term investor should pay attention to. Depending on market behavior, price fluctuations around these levels may present risks or opportunities.

Long-term forecast

With forecasts indicating a potential augment of 60% over the next three months and subsequent growth of 30% over six months, BNB’s prospects remain confident (though caution should be exercised). Moreover, the projected growth rate of 53% suggests that the 12-month outlook is solid, which is promising for investors.

BNB’s recent token burning activity – leading to the eventual elimination of 1.77 million tokens (estimated to be worth approximately $1 billion) – has emerged as a major reason for this positive sentiment.

This supply constraint is crucial to price stability and BNB growth for long-term investors. Each burn increases the value of the remaining tokens, but the volatile market makes it uncertain how this vigorous will play out.

Featured image from DALL-E, chart from TradingView