2024-04-22 11:06:19
- Rising open interest and negative funding interest puts BNB in position to reach $630.
- BNB can continue to outperform SOL despite the negative sentiment surrounding it.
According to AMBCrypto analysis, Binance coins [BNB] The funding rate turned negative on 22 April, suggesting that short positions dominated the derivatives market.
For context, a short position is a trader betting on a decline in price to make a profit. The financing rate, on the other hand, is the cost of maintaining an open position.
If positive, the longs pay the shorts to keep their positions open. But as it was negative, suggested the opposite for BNB. Despite their dominance in the market, shorts were rewarded for their positions.
BNB is king and aims for another rally
This was due to BNB price action. In the last 24 hours, the price of BNB has increased by 4.33%, and the price passed very talkative $600.
Typically, negative funding combined with a rising price means that short positions are not rewarded. For the price, this position might be bullish.
If this remains the case in the coming days, the price of the coin might rise as high as $630. BNB has for some time been the best performer among all top 10 cryptocurrencies.
Year-to-date (YTD), the coin’s value has increased by 92.12%, outperforming companies that solana [SOL] at their own game. But will the price continue to rise in the short term?
To assess its potential, AMBCrypto analyzed BNB’s open interest (OI). Santiment on-chain data showed that OI increased by 17.89% in the last 24 hours.
This put the calculation at $416.26 million, indicating that many traders opened more cryptocurrency-related contracts. Beyond that, OI affects price action.
Despite the currency at your own risk
If OI continues to increase the price in the same way, then the uptrend may continueand long positions may still have an advantage over short positions.
On the other hand, if OI falls while the price rises, the rally may weaken and a fall may be imminent. But at the moment, that may not be the case.
Furthermore, the weighted sentiment around the currency was negative in light of the bullish bias. The negative reading of the calculation suggests that the comments to the BNB were mostly gloomy.
In general, it is believed that this feeling pull down the demand for the currency. But one thing AMBCrypto noticed was that every time the metric was in the red zone, BNB defied the odds and staged a “hate rally.”
Realistically, here it is BNB’s market value in the form of SOL
However, traders may need to keep an eye on BNB momentum in the short term. If the coin becomes overbought, the price may pull back and fall below $600.
But as things stand now, the bears may not be able to stop the coin’s northward movement.
This is an automatic translation of our English version.
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