Traders Are Massively Shorting This Crypto on Binance
Binance Coin (BNB) is potentially facing another wave of fear, uncertainty and doubt (FUD) as open interest on the short side on Binance continues to rise exponentially. Interestingly, this increase in short orders is happening without any significant news or updates about Binance or BNB, suggesting that the current price action lacks a solid fundamental basis. This situation is reminiscent of the spike in short volume seen back in March.
One possible reason behind this increase in short interest could be tied to hedging strategies against the recent EDU launchpad event. Binance recently announced the end of the subscription period for Open Campus (EDU) on its launchpad platform, stating: “1 hour to go until the subscription period for the open campus EDU Binance Launchpad ends.”
New FUD coming?
Binance traders are max shorting BNB again$BNB pic.twitter.com/fUGHR7Bgm2— Skew Δ (@52kskew) April 28, 2023
As investors try to protect their positions and mitigate potential risks associated with the EDU launchpad event, they may be turning to shorting BNB as a hedging strategy. This could explain the sudden surge in short orders on the Binance platform, even in the absence of any negative news or developments related to BNB or the exchange.
While it is difficult to predict the exact impact of this increase in short interest on BNB’s price, it is essential to keep a close eye on the market and any relevant news that could influence investor sentiment. As short interest continues to grow, the potential for another FUD wave cannot be ruled out, especially if the market reacts negatively to the EDU launchpad event or any other unforeseen developments.
At press time, BNB is trading at $320 and has not really shown any exceptionally bad performance, despite shorting volume breaking all local highs.
