At the time of writing, most of the top cryptocurrencies in the market are trading in the red, not just on the daily but also on the weekly timeframe.
Like other altcoins, BNB suffered heavy losses after Bitcoin’s crash on September 7th. The price has fallen almost 12% in the last 7 days while it has also fallen 30% in two weeks.
BNB price chart | Source: Tradingview
While this is largely due to the general market slump, there are other reasons as well.
Unsurprisingly, there is a correlation between Binance Smart Chain (BSC) activity and BNB price. Indeed, the bullish statistics on BSC development and participation support the BNB price.
For example a report also recently mentioned BSC’s steady network growth compared to other chains like Polygon.
As for the number of new addresses, the number of addresses generated daily on Ethereum does not exceed 110,000, while the BSC is estimated at 182,000. In addition, Polygon saw a sharp increase as the number of new addresses rose from 500,000 to around 1.4 million.
The growth in the polygon network is particularly evident in the pricing of MATIC.
In addition, the number of daily transactions on BSC has decreased along with the price of the BNB since September 5th. Specifically, BNB has lost almost 30% of its value. While the majority of the Binance Smart Chain appears to be seeing growth in terms of metrics, hacks on BSC are like “the worm that makes the soup worse”.
On September 20, the multi-chain bridge protocol Pnetwork announced that it had been hacked and lost 277 pBTC (the bridge version of Bitcoin) on Binance Smart Chain. While these hacks didn’t have a big impact on the price, BNB is still trending down as of press time.
In the past, however, news of such hacks had a short-term impact on the price of the token.
Although the price is down at the time of writing, indicators have given the BNB a glimmer of hope. The BNB’s 30-day MVRV rate appears to have bottomed out on September 20 and rose shortly afterwards.
This seems like a good sign given that some recovery is underway in the BNB market at the time of going to press. In fact, the surge in token consumption also confirms a trend reversal since hitting local lows.
BNB price (green) and MVRV price (pink) | The source: Sanbase
Additionally, the BNB futures market offers a slightly bullish outlook as the long-short ratio of top traders is higher. This means that longs are dominating the market, which means that the market is slowly turning bullish for the BNB and expecting a rebound.
On September 21, the number of long accounts was 67.9% while the number of short accounts was 32.1%. The ratio of the net long and net short accounts to the total number of accounts with positions results in a long-short ratio.
Short account (red), long account (green), long-short ratio (black) | The source: Binance.com
Overall, therefore, it seems that the range between $ 360 and $ 370 after the recent decline could be a good entry point for BNB traders as futures traders anticipate a turnaround. However, with the market still falling at the time of writing, it is likely that BNB price will move either way.
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