Interest in Binance Coin (BNB) has started to pick up again, with less than 20 days to the release of ex-Binance CEO Changpeng “CZ” Zhao. Fueled by renewed market excitement, BNB’s price resisted going below $487 and has increased to $520.
However, several indicators suggest that the coin price might not stop at this level. Instead, it is likely to trade much higher.
CZ Holds the Key to Binance Coin Rally
Zhao, who founded Binance in 2018, was sent to jail in April. Then, a court in the US found the former Binance executive guilty of several crimes tied to the exchange. Following the verdict, BNB’s price dropped from $590 to $560.
While BNB’s price hit a new all-time high afterward, CZ’s anticipated return on September 29 appears to drive surging interest in the cryptocurrency.
According to Santiment, BNB’s Open Interest (OI) was under $325 million last Friday. As of this writing, OI has risen to $342 million, indicating that market participants are increasing their positions and gaining more exposure to the coin.
Historically, an increase in Open Interest during a price rise strengthens the uptrend. The image above clearly shows this, highlighting the strong correlation between BNB’s upward movement and increased net positioning.
Thus, if Open Interest continues to jump, BNB’s price might also follow.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance
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Author: Victor Olanrewaju
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