BNB Rises 5% in 24 Hours: Can Binance Coin Hit $600?

• BNB price rises 5% in 24 hours, up 13.5% over 14 days.
• Futures traders show bearish sentiment despite price increases.
• Technical analysis suggests a potential rally to $592.30, with $637.80 as next target.

Binance Coin (BNB) finds itself at a critical juncture as it approaches the coveted $600 price mark, a level unseen for several months. The cryptocurrency’s recent surge in demand has ignited optimism among holders, suggesting that this milestone could be within reach sooner than anticipated.

However, a curious divergence has emerged between spot market performance and futures trader sentiment, adding complexity to BNB’s near-term outlook.

BNB’s price has experienced a notable 3% uptick in the past 24 hours, aligning with the broader cryptocurrency market’s positive response to the U.S. Federal Reserve’s first interest rate cut since March 2020.

This recent gain contributes to an impressive 14% price increase over the last 14 days, with BNB currently trading at $567. Despite this bullish price action, futures traders appear skeptical about the sustainability of the rally.

BNB remains in negative territory

Data from Santiment reveals that BNB’s funding rate has remained in negative territory for three consecutive days, currently registering at -0.001%. This metric, crucial for aligning futures contracts with spot prices, indicates a prevalence of short positions among traders.

The negative funding rate suggests a short-term bearish outlook in the derivatives market, contrasting sharply with BNB’s spot price performance.

Interestingly, BNB’s price appreciation has triggered a wave of short liquidations, totaling $1.3 million since September 16, according to Coinglass. These liquidations occur when traders betting on price declines are forced to close their positions at a loss, potentially adding fuel to the upward price movement through forced buying.

From a technical perspective, BNB’s Moving Average Convergence Divergence (MACD) indicator paints a bullish picture. The MACD line’s position above both the signal line and zero line suggests strong upward momentum and the potential for continued price appreciation.

This technical setup aligns with the positive spot market performance, despite the bearish sentiment in the futures market.

Looking ahead, if buying pressure persists, BNB could potentially rally towards the $592.30 resistance level. A successful breach of this threshold could pave the way for a push towards $637.80, representing a major milestone in BNB’s recovery.