BinaryX (BNX) has become the strongest-performing cryptocurrency in the market today, rising 41% in the past 24 hours. Currently, this altcoin is trading at $1.75, recording a 412% increase in daily trading volume during that period.

This price surge is occurring as traders prepare for the token swap event from BNX to FORM, expected to take place on 03/21.

BNX gains momentum as traders stake big before the token swap

BinaryX launched the Four.Meme platform on 07/03/2024, later renaming it to Four to have a more unified identity. However, due to the popularity of FOUR in the meme coin community, the team decided to change it to FORM, announcing a 1:1 token swap from BNX to FORM scheduled for 03/21.

As the market awaits this swap event, traders have been actively accumulating BNX tokens. This is reflected in the altcoin's open interest, which has increased by 33% in the past 24 hours and reached $96 million at the time of writing.

Open interest tracks the total number of outstanding derivative contracts, such as futures or options, that have not been settled. When it rises during a price surge like this, it indicates increasing market participation. It signals the bullish sentiment of BNX holders as more traders open new positions to capitalize on the uptrend.

Furthermore, its funding rate is also in positive territory, supporting this bullish outlook. Currently, this rate is 0.339%.

The funding rate is a periodic fee exchanged between long and short-term traders in perpetual futures contracts to keep the price in line with the spot market. A positive funding rate like this means that long-term traders are paying short-term traders. It indicates strong buying pressure among BNX traders and confirms the bullish sentiment in the market.

BNX trading above a crucial EMA—Can the bulls push it above $1.85?

BNX is currently trading above the 20-day Exponential Moving Average (EMA) at the current price level. This important moving average measures the asset's price over the past 20 trading days, prioritizing more recent prices to help determine the short-term trend.

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

If BNX buyers consolidate their control and demand surges, they may push the altcoin's price above the resistance level at $1.77 and towards $2.19.

However, if selling pressure increases, BNX may lose its recent gains and drop to $1.77.