Binance Coin (BNB) holders have waited several months for the altcoin to reclaim the $600 price mark. The increased demand it currently enjoys suggests that this milestone could be achieved sooner rather than later.
However, sentiment among its futures traders has turned bearish as they begin to bet against a sustained price rally.
Binance Coin Sees Higher Demand for Short Positions
Binance Coin’s price has risen by 3% in the past 24 hours, reflecting the broader market upswing following the US Federal Reserve’s first interest rate cut since March 2020.
Demand for BNB has surged since the beginning of the month, with its price now at $557.11, marking a 14% increase over the last 13 days. However, futures traders remain skeptical about the rally’s longevity, as many continue to favor short positions.
According to Santiment, BNB’s funding rate — used to keep futures contracts aligned with the spot price — has been negative for the past three days, currently sitting at -0.001%.
Read more: How To Trade Crypto on Binance Futures: Everything You Need To Know
A negative funding rate indicates short-term pessimism, with more traders betting on a price decline than on a rally. However, BNB’s price has risen in the face of these bearish bets, leading to the liquidation of many short positions.
Short liquidations occur when traders betting on a price drop are forced to buy back the asset at a higher price to cover their losses, as the price moves against their expectations. When BNB’s price surged beyond a certain level, traders with short positions were compelled to exit to minimize losses.
Since September 16, BNB short liquidations have totaled $1.3 million, according to Coinglass.
BNB Price Prediction: Altcoin Is Poised for More
BNB’s moving average convergence/divergence (MACD) indicator suggests the potential for continued upward momentum. The MACD line (blue) currently sits above both the signal line (orange) and the zero line, indicating strong bullish sentiment and the likelihood of a sustained uptrend.
If buying pressure continues, BNB could rally toward the $592.30 resistance level. A break above this level would set the coin on track to target $637.80.
Read more: Binance Coin (BNB) Price Prediction 2024/2025/2030
However, if profit-taking begins, the bullish outlook could be reversed, with BNB’s price possibly dropping to find support at $466.60
Disclaimer
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Source: https://beincrypto.com/binance-coin-prepares-for-rally/