LUCKNOW (CoinChapter.com) — Binance’s BNB (BNB) has overtaken Solana (SOL) to reclaim its former fourth spot globally by market capitalization. BNB has gained 10.4% over the past 24 hours to reach $322.75 at press time, giving it a market cap of $48.9 billion. That places it around $4.6 billion above Solana in valuation.
BNB flipped Solana when most major crypto assets saw prices stagnate or decline amid bearish sentiment.
Traders Skeptical Despite Market Cap Surge
However, the upside seen in BNB has not convinced traders en masse to turn bullish.
According to on-chain analytics platform Santiment, BNB futures open interest rose modestly from $354 million to $362 million over the last day. But funding rates for these derivative contracts remain negative at -0.08%, a sign shorts outweigh longs. Most are still betting on BNB’s decline, giving back recent gains.
BNB’s trading volumes also display a lack of conviction in the rally. Reported volume decreased 4% over the past 24 hours to $2 billion, which some analysts see as waning momentum. Additionally, BNB’s Relative Strength Index (RSI), a gauge of upside velocity, surged into overbought territory at 78.4. Assets become technically vulnerable near such heights, with prices often cooling to reset RSI below 65.
Regulatory issues may also limit the near-term upside for BNB associated with Binance holdings. The CFTC continues to pursue a lawsuit alleging that Binance facilitated illegal trades on its US platform. The case carries unquantified liability risks for BNB’s parent firm. Binance notably saw BNB plunge last month amid the resignation of founder Changpeng Zhao.
BNB Price Sees Upswing Amid Recent Market Events
BNB has posted gains over the past few weeks, its first sustained upside move since falling in price last month. BNB declined from over $266 to under $225 following the resignation of Binance founder Changpeng Zhao and Binance’s $4.3 billion regulatory settlement with U.S. authorities.
According to data from CoinGecko, BNB’s rebound has been modest compared to some top-performing crypto assets in recent weeks. However, with Solana cooling from its rapid gains, some BNB investors appear to be betting on a return to year-to-date highs of around $350.
As crypto analyst Rekt Capital noted on Dec. 26, BNB has “broken its macro downtrend,” which has prevailed through recent market events.
This technical reversal introduces the potential for renewed upside momentum. Still, it remains to be seen whether BNB can transform short-term bullish trading activity into a sustained price recovery.
News on crypto adoption
Cryptocurrency mining news