Why BNB May Face a Sharp October Sell-off: Insights

The open interest of BNB has increased by about 10% over the past 11 days. Santiment claims that this is the cause of the alt’s price’s slower increase since the beginning of the month.

Since the start of the month, Binance Coin [BNB] has also experienced a spike in open interest due to its statistically strong link with Bitcoin [BTC].

Why BNB May Face a Sharp October Sell-off

According to Coinglass statistics, BNB’s open interest has increased by 11% since October 1st, standing at $353.88 million at the time of publication.

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On-chain data company Santiment recently stated on X (formerly Twitter) that the rise of unsettled contracts (futures and options) linked to popular assets like BNB may have contributed to the market’s present difficulties this month.

Why BNB May Face a Sharp October Sell-off: Insights,Why BNB May Face a Sharp October Sell-off: Insights

Santiment claimed that a spike in Bitcoin’s open interest, particularly beyond $7 billion, is usually a sign of extreme greed and is usually followed by a correction that lowers the value of the coin.

The data source brought up Bitcoin’s deleveraging event on August 17, which resulted in the largest single-day sell-off of the year for the leading asset. Over the course of August 17 and 18, BTC’s open interest decreased by 7%.

BNB for the current month

The fourth-ranked cryptocurrency asset changed hands for $205.80 at the time of publication. Based on statistics from CoinMarketCap, the altcoin’s price has decreased by 4% so far this month.

A 24-hour chart of price movements showed that on October 9th, sellers started a new bear cycle, which has since contributed to the asset’s declining slide.

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On October 9, the signal line crossed over with the MACD line, as seen by BNB’s Moving Average Convergence Divergence (MACD). Since then, red histogram bars have been used to indicate the indication.

A negative signal is generated when the MACD line of an asset crosses below the signal line.

Furthermore, the coin’s positive directional indicator (green), which yielded a value of 12.74, was positioned above the negative directional indication (red), which was at 22.11 at the time of press.

This configuration of an asset’s Directional Movement Index (DMI) suggests that sellers are in more control of the market.

Finally, at the time of publication, BNB’s Money Flow Index (MFI) and Relative Strength Index (RSI) were both positioned below their respective centre lines, at 35.29 and 38.21, respectively. This demonstrated that among BNB’s everyday trades, coin distribution exceeded accumulation.

Why BNB May Face a Sharp October Sell-off: Insights,Why BNB May Face a Sharp October Sell-off: Insights,Why BNB May Face a Sharp October Sell-off: Insights

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