Coinworld reports:
BNB Price Plunges by 10.11%, On-Chain Activity Shows Significant Decrease, Technical Analysis Indicates Strong Defense of Support by BNB Bulls
Following Binance Coin (BNB) hitting a historic high of $720.67 less than a month ago, the price has once again experienced a decline. This drop amounted to a decrease of 10.11% between July 4th and 5th.
While the coin’s price has been bearish since the beginning of this month, few holders anticipated such a significant pullback in such a short timeframe. In fact, as per AMBCrypto’s analysis, the cryptocurrency’s value plummeted due to substantial selling pressure in the market.
Low user activity leads to decreased demand for BNB
However, there are other contributing factors. Firstly, on-chain activity has witnessed a notable decrease. Evidence of this decline was revealed after examining data from DappRadar.
DappRadar serves as an analytical platform providing real-time insights into on-chain occurrences. According to their data, over the past seven days, the total number of Unique Active Wallets (UAWs) on the BNB blockchain has decreased by 9.14%.
In the realm of cryptocurrencies, UAW measures user engagement and activity on the blockchain. An increase in this metric signifies heightened interaction and usage of the coin.
Conversely, a decline in the metric indicates low demand for the cryptocurrency within the ecosystem. If this persists, it could lead to consolidation or, as seen recently with BNB, a price decline.
Another factor influencing the coin’s decline is Total Value Locked (TVL), which represents the value of assets locked on the blockchain.
A surge in TVL indicates that market participants are locking more assets into off-chain protocols. However, at the time of writing, the value, previously exceeding $5 billion 30 days ago, is now below that threshold.
Aside from interactions with BNB (the coin), this drop also suggests that activities such as token swapping and staking are far from reaching previous peaks.
Altcoin Eyes $526 Return
Should this trend continue, the price of BNB could see further decline. Based on the 4-hour chart, BNB bulls appear to have defended support at $469.60, leading to a rebound from the low point.
At the time of publication, the altcoin is trading at $479.90, inching closer to retesting $500. It’s worth noting that the Relative Strength Index (RSI) had previously reached oversold levels upon breaching 30.00.
However, RSI is currently on the rise, suggesting momentum is leaving the bearish zone. If this trend persists, the price of BNB could once again rise and remain above $500.
The Money Flow Index also exhibits similar patterns, indicating signs of reaccumulation. Once breaching $500, BNB may attempt to reach $526.90.
Regardless of the outcome, below is the BTC market value of the Bank of England.
