BNB has reclaimed the fourth position, surpassing Solana (SOL), in the latest rally fueled by the recent surge in Binance Coin’s value. However, as BNB records a 10.4% increase in the past 24 hours, reaching $322.75, traders are expressing caution, betting against the coin’s upward trajectory.
While BNB’s market cap has soared to $48.9 billion, creating a $4.6 billion gap with Solana, the daily trading volume has witnessed a 4% decline, settling at $2 billion.
Market intelligence from Santiment reveals that BNB’s total open interest (OI) experienced a modest increase from $354 million to $362 million within the last 24 hours.
However, a critical observation emerges from the data: short-position holders currently dominate BNB’s total open interest. Santiment’s report indicates that BNB’s Binance funding rate stands at a negative 0.08%, signaling that a substantial number of traders are placing bets against BNB’s potential price surge, anticipating a reversal in momentum.
Adding to the skepticism, Santiment’s data highlights that BNB’s Relative Strength Index (RSI) has surged from 66 to 78.4 over the past three days. Traditionally, a rising RSI suggests a potential impending price decline. To maintain a bullish outlook, BNB would need to ensure that the RSI stays below the 65 mark.
A significant factor contributing to bearish sentiments around BNB is the ongoing legal battle faced by Binance in the United States. The lawsuit casts a shadow of uncertainty over the coin’s future performance, with traders closely monitoring developments to gauge potential impacts on BNB’s market dynamics.
As BNB enjoys its renewed status as the fourth-largest cryptocurrency, traders remain vigilant, navigating a landscape of both optimism and skepticism shaped by market dynamics and ongoing legal challenges.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.