BNB Price Nears $1,100 After Recent Drop
BNB, formerly known as Binance Coin, trades close to $1,100 on Wednesday. It fell 3% the day before. The BNB Chain shows less network activity and a 5% drop in futures Open Interest. These signs point to weak demand for BNB.
On-Chain Demand and Network Activity Decline
The BNB Chain is seeing lower network activity. This means fewer users and less trading on its platform. When a network’s volume and revenue drop, it suggests less demand.
- Decentralized exchange (DEX) volume fell to $2.584 billion on Tuesday.
- This is down from $6.313 billion on October 8, according to DeFiLlama.
- The chain’s revenue also dropped to $98,294 from $787,655 on October 8.
If user demand does not increase, BNB’s price could keep falling.
Technical Outlook: BNB Faces Potential 25% Drop
BNB is close to the 200-period Exponential Moving Average (EMA) on the 4-hour chart, near $1,107. Breaking below this level would confirm a bearish flag breakout.
The bearish flag pattern shows a possible 25% fall, with key support levels at:
- $1,021
- $932
- $860
- $819
These support points match past lows from October and September 2023.
Indicators also show rising selling pressure:
- The Relative Strength Index (RSI) is at 42, below the neutral 50 level.
- The Moving Average Convergence Divergence (MACD) shows declining average lines.
If BNB stays above the 200 EMA near $1,100, it could rise to retest the recent high of $1,182.
Futures data shows a 4.9% drop in BNB’s Open Interest to $1.7 billion. This means traders may be reducing risk or leverage.
