BNB Flips Solana, But Traders Bet Against the Surge
BNB has reclaimed the fourth spot in the crypto rankings by surpassing Solana (SOL). However, traders are skeptical about BNB’s recent rally.
BNB’s Price Surge and Market Cap
In the past 24 hours, BNB has seen a 10.4% increase and is currently trading at $322.75. Its market cap has soared to $48.9 billion, creating a $4.6 billion gap between BNB and Solana. Despite the price surge, BNB’s daily trading volume has dropped by 4% to $2 billion.
Traders Betting Against BNB’s Rally
Data from Santiment reveals that while BNB’s total open interest has increased from $354 million to $362 million in the past 24 hours, short-position holders dominate the market. The Binance funding rate for BNB currently stands at negative 0.08%, indicating that a significant number of traders are expecting a price drop.
RSI Indicator and Bearish Expectations
Santiment’s data also shows that BNB’s Relative Strength Index (RSI) has risen from 66 to 78.4 in the last three days. A high RSI often suggests a potential price decline. To maintain a bullish trend, BNB’s RSI would need to stay below the 65 mark.
The Impact of Binance’s Lawsuit
One of the main factors contributing to bearish expectations for BNB is the ongoing lawsuit faced by Binance in the United States.
Hot Take: Traders Remain Cautious Amidst BNB’s Surge
Despite reclaiming its position in the rankings, traders are skeptical about the sustainability of BNB’s rally. With short-position holders dominating the market and indicators pointing towards a potential price drop, caution prevails among investors. Additionally, the legal challenges faced by Binance in the United States add uncertainty to BNB’s future performance. Traders will closely monitor key indicators such as the funding rate and RSI to gauge market sentiment and determine if BNB can maintain its bullish momentum.
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