Altcoin
Why BNB traders are bracing themselves for a dip below $300
Binance Coin has remained in the $300 price range, but sellers are betting on a further decline from this level.
- Derivative traders bet on BNB decline.
- BNB continues to decline but remains in the $300 price zone.
Although the Binance Coin [BNB] has not experienced a significant price trend in the last 24 hours, a crucial metric indicates stability.
Binance Coin maintains trend in the bull zone
The Binance Coin’s daily timeframe chart showed that its trend has consistently stayed above both the long and short moving averages, represented by the blue and yellow lines.
Despite recent price declines, this showed a bullish trend for BNB. The Relative Strength Index (RSI) is also above 50, confirming the strong bull trend.
Source: Trading View
Furthermore, on closer examination of the price trend, it was evident that BNB has experienced a decline over the past 48 hours.
At the time of this writing, it was trading at around $309, showing a decrease of around 1.8%. The decline in the previous trading session was less than 1%, with BNB trading at around $315.
Binance coin reclaims top spot in market capitalization
Binance encountered regulatory challenges in the United States involving the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). This resulted in mixed reactions for the BNB token towards the end of the year.
The regulatory challenge led to a decline in BNB’s price, impacting its market capitalization. Consequently, BNB temporarily lost its position in the top five assets, with assets like XRP and Solana surpassing it.
However, BNB has since regained its standing as the asset with the fourth-highest market capitalization, as reported by CoinMarketCap. As of this writing, its market capitalization was nearly $47 billion, reflecting around a 2% increase in the last 24 hours.
Sellers dominate BNB derivatives
The BNB funding rate currently stands at a positive of 0.005%, but this figure alone does not provide the complete picture.
Upon closer examination, it becomes evident that, up until now, the funding rate has predominantly been negative.
This suggests the sellers’ heightened aggression over the past few days. Also, it indicated a stronger inclination among traders toward anticipating a price decline.
Source: Coinglass
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Furthermore, the Open Interest has been declining up to the time of this writing. The last notable peak in Open Interest occurred around December 28, 2023, reaching nearly $500 million.
As of this writing, the Open Interest has been reduced to almost $395 million.
