BNB price is one of the few cryptocurrencies that continues to rise despite recent market weakness.
Binance Native Tokens benefit from changing holder attitudes and improving market conditions.
BNB could see growth
The price of BNB could capitalize on the optimism shown by investors. Over the past week, BNB holders have shifted their stance from bearish to bullish as funding rates held steady for the first time since late March.
The funding rate is a periodic payment between futures contract traders to ensure that the contract price remains close to the spot price. It reflects the difference between the perpetual contract and the price of the underlying asset, affecting long and short positions.
A positive funding ratio suggests that long-term contracts dominate the market, while a negative ratio suggests that short-term contracts are leading. Now that BNB’s funding rate is positive, traders are likely to bet on a price rise.
Second, the correlation between BNB and Bitcoin, the world’s largest cryptocurrency, is also improving. The high correlation between assets and BTC can be either detrimental or beneficial depending on market conditions.
This is great news as the price of Bitcoin, the world’s fourth largest cryptocurrency asset, is close to $70,000 and it is trying to secure support.
Read more: How to Buy BNB and Everything You Need to Know
This could also help the price of BNB continue its upward trend, potentially breaking the important resistance level at $618.
BNB Price Prediction: Breaking Ice-BERG
For the BNB price, $618 has been an unbreakable barrier since early April. Despite multiple violations, the altcoin has not been able to secure a price level that serves as support. Nonetheless, this hasn’t stopped the altcoin’s rise, which continues today.
Changing winds may push BNB price past the $618 barrier this time. This could allow the altcoin to start a rally and head towards $640.
Read More: Binance Coin (BNB) Price Prediction for 2024/2025/2030
However, if the attempt fails again, it is very likely that the cryptocurrency asset will lose support for its upward trend. As a result, the price of BNB could fall to $575. Losing this support would invalidate the optimism and send the altcoin towards $550.
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