BNB price is up today, why?
The price of Binance Coin (BNB) increased by more than 3% on June 14th. This was partially due to bearish traders opening more contracts tied to BNB, despite having losses from liquidations in the previous 24 hours. Additionally, BNB is considered to be oversold, which may have prompted traders to buy the dip.
On June 14th, the price of BNB climbed nearly 4% to $253. This recovery followed a 12% rebound two days after the price fell to a six-month low of $220. BNB’s rise was due to its oversold status, as the daily relative strength index (RSI) dropped to around 16.6, its lowest reading since March 2020. An RSI reading below 30 typically precedes a consolidation or recovery period in the market. For instance, the BNB daily RSI stint below 30 in December 2022 preceded a 50% price rally in the next two months.
The funding rate of BNB slipped below zero on June 10th and has been negative since. Bearish traders are paying bullish traders to keep their short bets open. BNB open interest has reached a one-month high of around $377 million, coinciding with an overall downtrend. These metrics suggest that most traders are betting on more downside, which often results in price rebounds that can extend if short positions get liquidated.
BNB’s price rebound comes after a steep 25% decline last week, prompted by the United States Securities and Exchange Commission’s lawsuit against Binance, which named BNB as an “unregistered security.” BNB’s price has come under pressure due to broader crypto market declines in recent years. However, the bulls argue that BNB’s strong support near $220 should make this level an ideal buy zone after the SEC-led price drop, if history repeats. As of June 14th, BNB/USD trades inside the $240 to $250 range, a consolidation area from December 2022 to January 2023.
- Bittrex US to allow withdrawals from Thursday.
- Binance seeks to deregister in Cyprus to prioritize larger markets.
- ECB to end interest rate hike cycle as inflation slows.
If the price decisively closes above the $250 resistance, then the primary upside target will be its 50-day exponential moving average near $300 in the third quarter, up around 20% from current prices. Conversely, a close below $240 would risk crashing the price toward $220. If the sell-off continues, the next downside target to watch is likely in the $180 to $205 area.
