Binance Coin (BNB) Falls Below Critical Support Level

Binance Coin Analysis. Source: TradingView

An asset’s 20-day EMA tracks its average price over the past 20 days. When the price falls below this key moving average, it signals a decline in buying pressure and a rally in coin distribution.

BNB Price Prediction: Long Traders Maintain Bullish Outlook

BNB’s price decline in the past two weeks has led to a decrease in its futures open interest. On-chain data revealed that on June 8, the altcoin’s futures open interest skyrocketed to a year-to-date peak of $1.12 billion and has since dropped.

At press time, BNB’s futures open interest is $674 million, having decreased by 33% since June 8.

Binance Coin Open Interest. Source: Coinglass

BNB’s futures open interest tracks the total number of outstanding futures contracts or positions that have not been closed or settled. When it falls, it suggests an uptick in the number of traders exiting the market without opening new positions.

However, despite BNB’s price fall in the last month, its funding rate across cryptocurrency exchanges has remained primarily positive. At press time, BNB’s funding rate is 0.0021%.

Funding rates are a mechanism used in perpetual futures contracts to ensure the contract price stays close to the spot price.

When an asset’s funding rate is positive, more traders hold long positions. This means that more traders expect the asset’s price to increase than those anticipating a price decrease. If selling activity wanes, BNB’s price may rally above $600 to exchange hands at $615.10.

Binance Coin Analysis. Source: TradingView

However, if market sentiments continue to be bearish, it may push BNB’s price down toward $555.90.

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