Journalist
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Key Takeaways
How did the community react to BNB’s new ATH above $1000?
CZ, Founder of the Binance exchange, thanked the community for driving the altcoin 10,000x from $0.10.
Can BNB extend its rally?
The strong Q4 seasonals could boost the uptrend, but there could be a risk of exchange selling pressure in the near term.
On the 18th of September, Binance Coin [BNB] hit a new all-time high (ATH) of $1006 on the Binance exchange.
The extended rally brought its monthly gain to 15% amid a broader relief rally after the bullish Fed rate cut. In fact, the daily trading volume spiked 28%, underscoring great market interest during the latest surge.
Source: BNB/USDT, TradingView
The next crucial target would be $1.2K if the altcoin decisively crosses above $1016.
A ‘truly community effort’
Reacting to the fete, the exchange Founder, CZ, called the move from the ICO price of $0.10 to $1000 a ‘truly community effort,’ adding the altcoin could front a similar run and hit $10K.
Source: X
The latest surge was also marked by a record high Open Interest (OI) of $2 billion, indicating that Futures demand also contributed to the rally.
In most cases, clearing such psychological levels attracts selling pressure. So AMBCrypto checked the market frothiness and the level of selling pressure.
The Funding Rate heatmap showed BNB’s rates were at 10%, and not yet at ‘frothy’ levels or at massive liquidation risks in the Futures markets.
Source: CoinGlass
Put differently, BNB still had room for growth because there was no excessive froth in the speculative markets just yet, as of the time of writing.
Even so, there was a spike in coins being moved into exchanges for sell-off. According to CoinGlass, BNB has seen daily exchange netflow in the past few days.
This means that more coins were sent to exchanges than accumulated, indicating likely impending selling pressure.
Source: CoinGlass
That said, with Q4 strong seasonals, any pullbacks could still be a buying opportunity.
According to the liquidation heatmap, key levels to watch to the south will be $940 and $900 in case of a liquidity-driven retracement.
Source: CoinAnk
