#ETHUp70%InQ3ButLiquidityFalls
The price of $BNB reached a local peak of $800. Will the rally continue in the short term?
@BNB Chain BNB's price edged lower this Monday, trading around $786 after posting gains for three consecutive weeks. During the day, the asset briefly rose above $800, while the derivatives market showed increased activity and a greater bias toward buyers.
In the derivatives market, BNB open interest reached around $1.81 billion this Monday, its highest level since early June, according to data cited by FXStreet.$BNB
The rise in open interest alongside the price increase reflects the entry of new leveraged positions. Meanwhile, the funding rate remains positive at around 0.0093%, indicating that traders holding long positions are more willing to pay those holding short positions.
Despite these metrics, flows into BNB spot exchange-traded funds (ETFs) have remained stagnant since May. The lack of significant inflows points to limited institutional interest in the asset in recent months. As a result, the recent price increase has been driven primarily by speculation in the derivatives market.
#BNBToken
In short, to consolidate a prolonged uptrend, the token will need a sustained shift in ETF flows that confirms institutional support. Long-term capital inflows would help cushion pullbacks like the current one, which are caused by derivatives liquidations.$BNB
The price of $BNB reached a local peak of $800. Will the rally continue in the short term?
@BNB Chain BNB's price edged lower this Monday, trading around $786 after posting gains for three consecutive weeks. During the day, the asset briefly rose above $800, while the derivatives market showed increased activity and a greater bias toward buyers.
In the derivatives market, BNB open interest reached around $1.81 billion this Monday, its highest level since early June, according to data cited by FXStreet.$BNB
The rise in open interest alongside the price increase reflects the entry of new leveraged positions. Meanwhile, the funding rate remains positive at around 0.0093%, indicating that traders holding long positions are more willing to pay those holding short positions.
Despite these metrics, flows into BNB spot exchange-traded funds (ETFs) have remained stagnant since May. The lack of significant inflows points to limited institutional interest in the asset in recent months. As a result, the recent price increase has been driven primarily by speculation in the derivatives market.
#BNBToken
In short, to consolidate a prolonged uptrend, the token will need a sustained shift in ETF flows that confirms institutional support. Long-term capital inflows would help cushion pullbacks like the current one, which are caused by derivatives liquidations.$BNB