Binance Coin (BNB) holders have been waiting for months for the altcoin to reclaim the $600 mark. The current surge in demand suggests that this milestone could come sooner than later.
However, futures traders' sentiment turned negative as they began betting against a continued rise in prices.
Binance Coin Sees Growing Demand for Short Positions
Binance Coin price has risen 3% in the past 24 hours, reflecting the overall market rally following the US Federal Reserve’s first interest rate cut since March 2020.
Demand for BNB has been on the rise since the beginning of the month, and it is now trading at $557.11, up 14% over the past 13 days. However, futures traders remain skeptical about the sustainability of the rally, with many continuing to favor short positions.
According to Santiment, BNB’s funding rate — used to keep futures contracts aligned with the spot market price — has been negative for the past three days, currently standing at -0.001%.
A negative funding rate indicates short-term pessimism, with more traders betting on a price decline rather than a price rise. However, BNB’s price has risen in the face of these bearish bets, resulting in many short positions being liquidated.
Short liquidations also occur when traders who bet on a price decline are forced to buy the asset at a higher price to cover their losses, as the price moves against their expectations. When the BNB price rose above a certain level, short traders were forced to exit to minimize their losses.
Since September 16, BNB short liquidations have totaled $1.3 million, according to Coinglass.
BNB Price Prediction: Cryptocurrency Poised for More
The Moving Average Convergence/Divergence (MACD) indicator for BNB is indicating that the bullish momentum could continue. The MACD line (blue) is currently above both the signal line (orange) and the zero line, indicating strong bullish sentiment and a potential continuation of the uptrend.
If the buying pressure continues, BNB could rally towards the resistance level $BNB 30.592 A break of this level will put the coin on track to target $637.80.
