- Traders kept their faith in shorting BNB.
- The coin’s trajectory could remain in consolidation for the time being.
The growth of Binance Coin [BNB] in the last 30 days has been minimal, registering a 4.07% uptick within the period. But this could be a sign of strength, especially as the broader market has had to deal with a period that was quite opposite to the performance of the first quarter.
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Despite that, a large number of traders seem to be confident in a further BNB decrease, based on the funding rate. According to Santiment, funding rate in perpetual futures contracts tied to the coin has been negative since 21 April.
Eliminating the overconfident
When the funding rate is negative, it means that shorts were willing to pay longs in order to keep the bearish position open. The opposite happens when the funding rate is positive.
At press time, the BNB’s funding rate was -0.007. This implied that bearish sentiment uncoiled from the highs of the previous weeks. Still, traders who expect the underlying asset price to drop outweighed those with a more optimistic view.
However, the expectations of these traders were caught in between reality and fantasy. Notably, short contracts were the most liquidated on 30 April. But since then, such a large wipeout has not occurred.
According to Coinglass,
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Author: Victor Olanrewaju
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