BinaryX (BNX) Soars 41% as Market Awaits BNX-to-FORM Token Swap

The altcoin currently trades at $1.75, noting a 412% uptick in daily trading volume during that period.

BinaryX (BNX) has emerged as the market's top gainer today, surging 41% in the past 24 hours. The altcoin currently trades at $1.75, with a 412% uptick in daily trading volume during that period.

The rally comes as traders position themselves ahead of the highly anticipated BNX-to-FORM token swap, which is set for March 21.

This development saw the open interest on BNX rise by 33% to reach $96 million at the time of writing.

What Is Open Interest?

Open interest tracks the total number of outstanding derivative contracts, such as futures or options, that have not been settled.

A surge in open interest during a price rally indicates that more traders are participating and placing bets on the asset's price movement. In this case, it signals the bullish conviction among BNX holders as they engage in leveraged trading to amplify their returns.

Moreover, the funding rate on BNX is also positive at 0.339%.

What Is Funding Rate?

The funding rate is a periodic fee exchanged between long and short traders in perpetual futures contracts to keep prices aligned with the spot market.

A positive funding rate means that long traders are paying short traders. It indicates stronger buying pressure as more traders open long positions to capitalize on the upward momentum.

On the other hand, a negative funding rate signifies that short traders are paying long traders, suggesting more selling pressure and a potential bearish outlook.

At its current price point, BNX is trading above its 20-day exponential moving average (EMA).

What Is Exponential Moving Average?

Exponential moving average gives more weight to recent prices to help identify short-term trends.

When it sits below an asset's price, it is a bullish signal suggesting that the market is in an uptrend and buyers are in control.

If BNX buyers manage to strengthen their control and drive demand higher, they could push the altcoin's price past the Fib level at $1.77 and continue towards the next resistance at $2.19. This Fib level could serve as a rallying point for sellers to exert pressure and attempt to stall the uptrend.

However, if the tide turns and selloff pressure increases, BNX could shed its recent gains and plunge to the Fib level at $1.77. From there, sellers might aim for the lower Fib level at $1.68.