BNB price is one of the few cryptocurrencies that keep rising despite the recent bearishness noted in the market.
The Binance native token benefits from its holders’ changing attitude and improving market conditions.
BNB Could See Growth
BNB’s price could leverage the optimism its investors are exhibiting. Over the past week, BNB holders changed their stance from bearish to bullish, as the funding rate has been sustained for the first time since March’s end.
The funding rate is a periodic payment between traders in futures contracts to ensure that the contract price stays close to the spot price. It reflects the difference between the perpetual contract and the underlying asset price, influencing long and short positions.
Positive funding rates hint at long contracts dominating the market, while negative rates show short contracts taking the lead. Since BNB’s funding rate is now positive, traders are likely betting on a price rise.
BNB Open Interest. Source: Coinglass
Secondly, the BNB’s correlation with the world’s biggest cryptocurrency, Bitcoin, is also improving. A high correlation of an asset with BTC can be both a bane and a boon, depending on market conditions.
For the world’s fourth biggest crypto asset, this is a boon since Bitcoin’s price is close to $70,000, and looking to secure it as a support floor.
Read More: How To Buy BNB and Everything You Need To Know
BNB Correlation with Bitcoin. Source: TradingView
This could also help BNB’s price continue its uptrend and potentially even breach the critical resistance of $618.
BNB Price Prediction: Breaking the Ice-BERG
For BNB price, $618 has been an unbreakable barrier since the beginning of April. Despite multiple breaches, the altcoin could not secure the price level as a support floor. Nevertheless, this did not stop the altcoin’s uptrend, which continues today.
The changing winds could push BNB’s price through the $618 barrier this time. This would enable the altcoin to initiate a rally and head towards $640.
Read More: Binance Coin (BNB) Price Prediction 2024/2025/2030
BNB Price Analysis. Source: TradingView
But if the attempt fails once again, the crypto asset is highly susceptible to losing support for the uptrend. Consequently, BNB’s price could dip to $575. Losing this support would invalidate the bullish thesis and send the altcoin towards $550.
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