New data shows that BainanceQueen investors have conflicting feelings about the price of this digital currency. The requirement of authentication in Bainance has caused some to doubt the future of the exchange, however, some investors still have rising feelings about the price of Bainance Coin.
to the Report Quinn Telegraph, the price of Binance coin digital currency has risen 30% in the last 2 weeks and it seems that the fourth currency in the market is trying to overcome the resistance of $ 450. This resistance is exactly at the same level as the June high, which was followed by a 48% correction and the price fell to $ 225.
A comparison of Bainance Quinn’s current position with previous ones shows that there are still reasons for investors to be skeptical of the digital currency’s performance, especially since Solana, a smart contract platform competing with Bainance, on August 18. Recorded a new historical peak.
Solana’s price increase is partly due to the $ 70 million fundraiser to support Mango Markets, a decentralized exchange operating in the Solana network, and the launch of a popular NFT project.
After Bainance suddenly announced on July 16 (July 25) that it intends to suspend trading in stock tokens, the price of Bainance Coin fell and investors became concerned that pressure from regulators could prevent the exchange from growing.
Late in July, July saw the rise of investor investor concerns in some European countries and Hong Kong with the suspension of derivatives trading. The Central Bank of the Netherlands also warned the exchange on August 18 after realizing that Bainance was providing digital currency services to its citizens. Dutch officials said Bainens had not complied with anti-money laundering and anti-terrorist financing laws.
A few days ago, Bainance announced on its official website that from now on, users will be required to complete the Intermediate authentication steps to use the facilities of this exchange. According to Bainance, users who have not gone through the authentication process will only be able to withdraw their digital currencies and transfer them to another wallet. This naturally causes those traders who are not able to authenticate in Bainance due to sanctions to withdraw their capital from this exchange; An issue that could affect the volume of binary transactions.
Also read: The end of the work of Iranian traders in Bainance; Where is the next destination?
Bainance Quinn Permanent Contracts Rate Status
Examining derivatives trading data is a good way to identify the position of whales and professional traders in the binoculars market.
Although futures contracts always match, their leverage or coefficient may be different. Therefore, by examining the funding rate of permanent contracts, it is possible to determine to what extent the position of investors is up or down.
The term capitalization rate in the futures market refers to the amount of commission that long contract holders (those who believe prices rise) and short contract holders (those who believe prices fall) must pay to keep the market in balance. Permanent contracts are also a group of derivative contracts that do not have an expiration date.
Derivatives exchanges with a market receive a fee from investors who want more leverage and provide it to the other party. This fee is usually calculated every 8 hours, however some exchanges, such as FTX, change their funding rate by the hour.
In neutral markets, the rate of capital supply varies between zero and 0.03 percent. This figure is equal to a weekly capitalization rate of 0.6%, indicating that it is the holders of long contracts who pay the fee.
Between August 11 and 17 (August 20-26), the trend of changes in the rate of capital increased somewhat and reached 0.10 percent, but recently this trend has been reversed and the rate of capital has reached close to zero. However, the recent downturn is quite different from the downward trend in late July, which brought the rate of capital below zero and minus 0.15 percent, as recent changes do not erode the confidence of leverage market traders.
Professional traders have not yet entered the uptrend
To find out if this data reflects certain points about permanent contracts, we need to look at the premium contracts of Binance coin quarterly. Premium measures the price difference between futures contracts and current markets.
Micro traders usually skip quarterly contracts because of the difficulty of calculating futures premiums or manually changing near-expiration positions. In the case of investment instruments that have a specific expiration date, unlike permanent contracts, it does not adjust the market capitalization rate. As a result, the imbalance in demand leads to the formation of price differences between futures contracts and current markets.
Premium in neutral markets varies between 0.2 and 1 percent, and the negative of this index indicates a downward phenomenon, which in economics is called “inversion”.
The data show that with the decline in the rate of capital supply that we saw in mid-July (July), futures contracts up to September (September) of Binance coin have been registered with a 5% discount compared to the current price. However, the situation with quarterly futures contracts has been neutral in recent weeks, reflecting the neutral and somewhat downward sentiment of professional traders.
Indicators of derivatives trading show no sign of investor sentiment. In addition, it is clear that micro-investors and market whales are less likely to break the $ 450 Bainance Quinn resistance in the short term.