Why is BNB price up today?
The price of BNB (BNB) is up around 3% today, in part due to bearish traders opening more BNB-tied contracts despite suffering losses via liquidations in the past 24 hours. In addition, BNB stands extremely "oversold," which may have prompted traders to buy the dip.
On June 14, BNB price climbed nearly 4% to $253. The gains came as a part of a recovery that saw its price rebounding 12% two days after falling to a six-month low of $220.
From a technical perspective, BNB's rise on June 14 came on the heels of its "oversold" status. Notably, the daily relative strength index (RSI) dropped to around 16.6 two days ago, its lowest reading since March 2020.
An RSI reading below 30 typically precedes a consolidation or recovery period in the market.
For instance, the BNB's daily RSI stint below 30 in December 2022 preceded a 50% price rally in the next two months.
The funding rate of BNB slipped below zero on June 10 and has been negative since. In other words, bearish traders are willing to pay bullish traders to keep their short bets open.
Meanwhile, BNB open interest has reached a one-month high of around $377 million, coinciding with an overall downtrend. All these metrics suggest that most traders are betting on more downside, which often results in price rebounds that can extend if short position get liquidated.
BNB's price rebound also comes after a steep 25% decline last week, prompted by the U.S. Securities and Exchange Commission's (SEC) lawsuit against Binance, which named BNB as an "unregistered security."
Related: SEC and Binance.US to negotiate deal avoiding total asset freeze
In recent years, BNB price came under pressure due to broader crypto market declines, as shown below.
Each time, BNB price discovered strong
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