Crypto exchange Binance has been under intense regulatory scrutiny over the last few months, and its native token BNB has been suffering as a result. Even though the exchange seems to be finding its footing once more, BNB still faces immense selling pressure. This is evidenced by the fact that its open interest has skyrocketed to new all-time highs.
Analysts have noticed an interesting trend in BNB’s futures, with perpetual futures open interest reaching new heights. Negative funding rates of -200% APR for the next period of funding have not stopped traders from shorting the altcoin, suggesting that they expect a massive crash soon.
This could mean that the United States Department of Justice (DoJ) is finally leveling charges against Binance. If the SEC’s lawsuit against Binance back in June is anything to go by, a DoJ lawsuit would have a significantly negative effect on the price of BNB.
Nevertheless, BNB is still trading above $240, likely due to the Arkham sale on Binance launchpad. Once the sale ends on July 18, the temporary buy pressure could be eliminated and the cryptocurrency could drop back to $230.
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