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Traders hold long positions on Binance Coin despite risks

Traders hold long positions on Binance Coin despite risks

Grafa2024/09/06 04:55
By: Liezl Gambe
BNB+1.01%

According to recent market analysis, Binance Coin (CRYPTO:BNB) futures traders are facing increased volatility, with a notable struggle between long and short positions. 

Despite the potential for liquidation if BNB’s price drops, there remains a strong demand for long positions. 

BNB's price fluctuations have caused an imbalance between long and short positions in its futures market. 

Since August 28, funding rates have shifted between positive and negative, showing the conflict between bullish and bearish views. 

Positive funding rates indicate more demand for long positions, while negative rates suggest a shift towards short positions. 

The current trend of positive funding rates implies that traders are favoring long positions even as BNB attempts to stabilise from its downtrend. 

The altcoin has remained below a descending trend line, reflecting negative market sentiment and a risk of further decline. 

If the downward trend persists, long traders could be at risk of substantial liquidations. 

This is already evident, with recent days showing long liquidations exceeding short ones. 

On Wednesday, long liquidations reached $1.04 million, compared to less than $250,000 for short liquidations. 

Technical indicators for BNB also suggest a bearish market. 

The Relative Strength Index (RSI) has dropped to 38.33, signaling strong selling pressure. 

Additionally, the Elder-Ray Index, which gauges the strength of buyers and sellers, has been negative since August 27, showing sellers' dominance. 

If bearish pressure continues, BNB's price could drop below $500 to around $475.90. 

However, if the market sentiment turns bullish, BNB could rise to $522.90. 

Traders are closely monitoring these critical levels as the competition between bullish and bearish forces intensifies. 

At the time of writing, the BNB (BNB) price was $506.19.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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