Binance Coin (BNB) is approaching the $600 mark, a price not seen in months. The recent surge in demand has created optimism among investors, who believe that BNB could reach this level sooner than expected.
However, there is a distinct difference between spot market performance and futures traders' sentiment, making BNB's short-term outlook unpredictable.
Over the past 24 hours, the price of BNB has increased slightly by 0.95%, along with the positivity of the cryptocurrency market after the US Federal Reserve (FED) cut interest rates for the first time since March 2020.
This increase has brought the price of BNB up 14% in the past 14 days, currently trading around $567. However, futures traders are still uncertain whether this bullish momentum can be sustained.
Current status of BNB
According to data from Santiment, BNB's funding rate has been negative for three consecutive days, currently at -0.001%. This shows that many traders are betting on a price drop.
Negative funding rates could be a sign that the futures market is taking a negative view in the short term, even though the BNB price in the spot market is still rising.
Interestingly, BNB’s price surge has forced many short traders to close their positions, with a total of $1.3 million in liquidations since September 16, according to data from Coinglass. This could create additional buying pressure, pushing BNB’s price higher.
Technical signals are bullish.
From a technical perspective, BNB's MACD indicator shows a strong bullish trend, as the MACD line is above both the signal line and the zero line.
If the buying pressure continues to be strong, BNB could move towards the resistance level of $592.3. If this level is broken, the price could rise to $637.8, marking an important recovery for BNB.
