Binance Coin (BNB) has reached a new all-time high for the first time in over three years, but the asset could experience high volatility. BNB has surged by 12% in the past 24 hours and is currently trading at $705.8. Earlier today, the asset hit a new ATH of $711.56, marking its highest point since May 12, 2021.

Thanks to the recent price rally, BNB’s market cap has surpassed the $100 billion mark, a level last seen in December 2021. Additionally, the daily trading volume of the Binance-native token has increased by 62%, reaching $4.18 billion.

Significantly, Binance, the largest centralized cryptocurrency exchange, burned 1.94 million BNB tokens worth approximately $1.17 billion on April 24, contributing to the bullish momentum of the asset. Currently, BNB has around 147.58 million tokens in circulation.

BNB’s market cap surpasses $100 billion, driven by a 62% increase in daily trading volume.

According to data from Santiment, BNB’s total open interest surged by 32.5% over the past 24 hours, rising from $525.66 million to $696.67 million. This sudden increase indicates highly volatile trading, with some traders betting on a further price rally for the token.

Moreover, data shows that BNB’s Binance funding rate has dropped from 0.02% to 0.01% in the past 24 hours. The downward trend in the funding rate suggests that more traders are betting on a decline in BNB’s price.

Additionally, the BNB Relative Strength Index (RSI) is currently at 74, indicating that BNB is overbought at this price point, which might prompt some investors to seek short-term gains. For BNB to remain in the bullish zone, its RSI would need to cool down below the 50 mark.

It’s important to note that high price volatility could be expected for BNB due to the sudden increase in open interest and declining funding rates, potentially leading to significant liquidation.

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