{"id":601369,"date":"2024-04-04T14:00:17","date_gmt":"2024-04-04T14:00:17","guid":{"rendered":"https:\/\/ktsl888.com\/?p=601369"},"modified":"2024-04-04T12:26:09","modified_gmt":"2024-04-04T12:26:09","slug":"trouble-ahead-binance-coin-futures-market-under-pressure-with-negative-funding-rates","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/trouble-ahead-binance-coin-futures-market-under-pressure-with-negative-funding-rates\/","title":{"rendered":"Trouble Ahead? Binance Coin Futures Market Under Pressure With Negative Funding Rates"},"content":{"rendered":"
The outlook for Binance Coin (BNB) has turned cloudy, with both futures market data and technical indicators flashing bearish signals. Based on our analysis of Coinglass data,<\/a> negative funding rates and declining open interest in BNB futures contracts paint a picture of growing pessimism among traders.<\/p>\n A negative funding rate suggests that more traders are holding short positions, anticipating a decline in the price of the asset. This sentiment was confirmed on April 1st, when BNB’s funding rate dipped into negative territory at -0.012%.<\/p>\n Further fueling the bearish narrative, BNB’s futures open interest has also witnessed a slight decline of 0.15%. Open interest reflects the total amount of outstanding futures contracts that haven’t been settled yet.<\/p>\n A decrease in open interest suggests traders are exiting their positions without opening new ones, potentially signaling waning confidence in the market.<\/p>\n <\/p>\n Funding rates are a crucial mechanism in perpetual futures contracts that keep the contract price aligned with the spot price. When the contract price trades higher than the spot price, long position holders pay a fee to shorts, resulting in positive funding rates.<\/p>\n Conversely, negative funding rates materialize when the contract price dips below the spot price, indicating that short sellers are currently paying fees to longs.<\/p>\n <\/p>\n As negative sentiments mount, this open interest is expected to plummet further. This would imply that more traders are closing their positions and not opening new ones, suggesting a potential price drop for BNB.<\/p>\n The bearish sentiment isn’t confined to the futures market.\u00a0The Moving Average Convergence Divergence (MACD), another technical indicator, is suggesting a possible resurgence in selling pressure.<\/p>\n There’s an indication that the MACD line might cross below the signal line, typically interpreted as a bearish sign signaling the return of sellers to the market. It’s noteworthy that since March 18th, the MACD lines for BNB have been positioned for a downtrend.<\/p>\n <\/p>\n Considering both the futures market and technical analysis, there’s a potential for a short-term decline in BNB’s price. However, it’s important to acknowledge that market sentiment can shift rapidly, and technical indicators aren’t infallible predictors of future price movements.<\/p>\n At the time of writing, BNB was trading at $587<\/a>, up 6% in the last 24 hours, data from CoinMarketCap shows.<\/p>\nBinance Coin Funding Rate And Open Interest Down<\/h2>\n
Source: Coinglass<\/a><\/pre>\n
Source: Coinglass<\/a><\/pre>\n
More Traders Close Their Positions<\/h2>\n
BNB market cap currently at $87.9 billion. Chart: TradingView.com<\/a><\/pre>\n
BNB Price Retreat In The Offing?<\/h3>\n