BNB Chain’s recent price action has shown signs of struggle, with its volume dropping below $3 billion after reaching higher peaks in previous months. Once a dominant force in the crypto space, BNB’s value has experienced a decline that has shaken its position, leaving traders to choose bearish positions.
Despite a notable surge of 10% in BNB’s price over the past seven days, leading to its rise in the top 10 cryptocurrencies, the momentum seems to be fizzling. With the cryptocurrency ecosystem experiencing a decline, BNB’s price faces mounting resistance, triggering concerns that it may soon break down below $600.
The surge in BNB Chain’s decentralized exchange (DEX) volume had initially attracted attention, particularly with its peak hitting $7 billion, surpassing Solana’s DEX volume. However, in stark contrast, as of this writing, BNB Chain’s DEX volume has dropped to $2.8 billion. The fall in volume correlates with the reduction in BNB’s price, which dipped below $700, indicating a decrease in buying pressure.
In addition to the diminishing trading activity, BNB Chain’s fees have fallen behind Solana’s after previously leading the charge. As a result, many in the market are questioning whether BNB can regain its previous momentum, particularly with its price struggling to return to the $700 mark in the short term.
Moreover, the negative funding rate surrounding BNB signals bearish sentiment among traders. A negative funding rate means that those holding long positions are paying more, reinforcing the belief that there is a lack of confidence in BNB’s price sustaining upward movement. This negative outlook could lead to further price declines if the trend continues.
From a technical standpoint, BNB’s price is facing the formation of a rising wedge, a pattern that signals a possible reversal after a period of price increase. The Relative Strength Index (RSI) also dropped from its February 12 peak, suggesting waning momentum. If this continues, BNB may see a price correction toward $617.60 or even risk dipping to $575.80 in a highly bearish scenario.
However, there is still room for optimism should DEX volume see an increase once again. A resurgence in activity could potentially drive the demand for BNB, allowing its price to rally to levels of $733.10. With market sentiment teetering, the coming days could reveal whether BNB’s price can recover or continue its downward trend.
Stay updated as the market develops and the fate of BNB Chain unfolds.
