- Binance Coin (BNB) has fallen below $500, with its price dropping from a high of $537 to a low of $496.
- Activity on the BNB Chain has sharply declined, including a 75.8% drop in DEX volumes.
As the global crypto market faces a downturn with Bitcoin (BTC) slipping to the $55K zone, Binance’s native cryptocurrency, BNB, is not immune to the turmoil. According to CMC data, BNB has fallen over 7.64% in the past 24 hours, dipping from a high of $537 to a low of $496.
At the time of writing, BNB is priced at $501.90 with a market cap of $73.24 billion, holding the 4th position in the market. Despite the price drop, BNB’s daily trading volume has increased by over 14%, reaching $1.73 billion.
However, this uptick in trading volume does not fully offset the decline in price. BNB’s value has decreased substantially from its recent peak of $598.80 on August 23, reflecting a 17.12% drop by September 4.
Further, this drop in BNB’s price reflects a broader decline in activity on the BNB Chain, which may be causing the lower price. Investors are cautious as BNB struggles to reach mid-June highs. Additionally, decentralized exchange (DEX) volumes on the BNB Chain have fallen by 75.8% in the week leading up to September 3, putting it behind competitors like Solana and Ethereum.
Looking ahead, BNB faces challenges with decreasing future open interest and negative funding rates, indicating further declines.
Technical Analysis of Binance Coin (BNB)
According to the daily price chart, BNB is currently showing bearish signals. The recent crossover of the 9-day moving average below the 21-day moving average indicates that the cryptocurrency has been in a bearish trend over the past 9 days.
Additionally, the Relative Strength Index (RSI) reading of 29 suggests that BNB is approaching oversold conditions. An RSI value below 30 typically signals that an asset is oversold and may be due for a rebound, but it can also indicate continued bearish momentum if the downtrend persists.
In that case, if BNB fails to break above the $550 mark, it could face further declines, potentially dropping to $480 and possibly even reaching as low as $465 or below $450.
Overall, BNB’s current market behavior and technical indicators suggest a challenging month ahead, with significant risks if the bearish trend continues.
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