The BNB Coin price fell somewhat when the cryptocurrency market cooled down. The coin currently trades at $316, down from this week’s ATH of $336. It has lost over 52% of its value from its ATH, with a market value of $53B.
BNB Trades are Declining
BNB/USD Chart. Source: TradingView.
There was a time when people called the BSC, BNB Chain. But, Binance changed the name. It is a well-known blockchain platform that competes with Ethereum. BNB Chain has grown in popularity among developers due to Bitcoin’s widespread exposure. Solana and Avalanche have cheaper transaction prices. But, their speed is slower. So why aren’t more people using them?
Developers used the BNB Chain to create many decentralized applications. MOBOX, BinaryX, and SecondLive are among the most popular games made with the system. Developers used BNB to develop DEX apps such as PancakeSwap, ApeSwap, and BiSwap.
Besides those mentioned above, there are more widely used apps. For instance, Venus, Cream Finance, and Alpaca Finance. The growing anxiety over the Federal Reserve made the BNB price fall sharply. The bank has stated that it will keep raising interest rates and begin to reduce asset purchases.
People raised concerns about crucial industries such as DeFi, metaverse, and NFTs. A dramatic drop has occurred in DeFi’s TVL in recent weeks. Following Terra’s fall and its environment, the situation has recently deteriorated.
Likewise, recent research indicates that the NFT business has weakened. BNB transactions have also been decreasing, as reflected in the graph. BNB transactions have also decreased in Binance’s network due to its widespread adoption.
BNB Price Forecast
There has been a strong negative trend for the last few days on the BNB daily chart, as displayed below. The coin created a black-and-white inverted cup-and-handle motif. This pattern has been a bearish indicator. The current price is noteworthy because it is at the bottom of the cup.
Break and retest patterns are common in the stock market. As a result, the BNB price expects its bearish trend to resume. The bears are aiming for a critical support level of $250. The negative outlook invalidates if the price rises over the $360 barrier level.
What’s Next For BNB?
For the first time in a long time, BNB was trading above $300. Bulls were happy with the coin’s ability to rise to $400 during this consolidation period. But, the recent cryptocurrency crisis has put a lot of pressure on BNB. But, more importantly, BNB has lost a key demand zone.
Despite the market’s strong volatility, the coin attracted buyers in the $308 to $253 range. Due to the latest fall, the price activity has moved outside this buy zone. A full takeover by the bears of BNB is unlikely unless there is a comeback over the next 24 hours. The currency is likely to hit a low of $222 before it begins a new bull run.