Based on Bitcoin’s impressive rally, most altcoins do well in the first few days of the month. However, the latest flash crash has shaken the market. On the other hand, there are some coins that show signs of weakness even before the market actually collapses. BNB is one such example.

BNB price chart | Source: Tradingview

The BNB struggled with strong resistance at $ 500 for two weeks before falling with the market on September 7th. Although the altcoin was able to rebound after the ascending triangle breakout, the price was immediately rejected at the above resistance. In particular, the dynamism of the NBB is more dependent on the market and is currently struggling to catch up. However, could its trajectory reveal anything other than mere losses and gains?

High social volume, low rating

Notably, at the time of writing, BNB’s social volume has skyrocketed and the coin is a “trending project” on social media. This happened at the same time as a price increase of more than 5% in just 16 hours. But the question is, will these gains be sustained or will they go away after encountering resistance?

BNB price (green) and social volume (pink) | The source: Sanbase

Although the social indicators and the price development of the BNB look more optimistic than last week, the MVRV is still entering negative territory. The 30-day MVRV was -7.6, its lowest level since July 20. At this point the BNB was 35% below the current level. Even the NFT craze couldn’t have had much of an impact on the price of this altcoin. On 9.9. the BNBPunks team introduced the latest NFT BNB market and its hype faded with the drop in prices.

Futures don’t look that good

When the OI (Open Interest) is decreasing, the BNB futures market does not offer a bullish outlook. An OI drop of over 40% was observed immediately after the flash crash. In addition, the top trader’s long / short ratio shows that short has dominated the market, which means the market is likely to fall in the short term. The long / short ratio represents the ratio of net long and net short positions to the total open interest of the top 20% of users with the highest margin balance.

Open contract | The source: Binance.com

However, at the time of writing, longs are starting to dominate again with 82% long and 12% short. In addition, the BNB’s stock-to-flow index has peaked. The S2F model essentially quantifies scarcity by looking at parameters such as total supply and annual production.

Higher values ​​mean that less current supply is coming into the market, leading to more scarcity and lower inflation. So overall, this could be an opportunity to buy the dip because even if the BNB climbs to last week’s high of $ 504, there will be an additional 20% gain.

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