BNB’s price has started to decline once again following a six-day surge that led to new record highs of $725 on June 6. The cryptocurrency has now dropped to a low of $635 within a day. Currently, the price is fluctuating around $643, showing a 5% decrease over the past 24 hours as per CoinMarketCap data.
The performance of BNB has been quite bullish in the last month, with the layer-1 token skyrocketing by 10% over the last 30 days and 25% in June alone, reaching $725 on June 6, its highest value since November 2021. Despite this impressive rally, profit-taking has caused the price to decline, raising concerns of further drops.
Despite facing regulatory challenges, Binance has managed to maintain its resilience, leading to a resurgence in activity on its BNB Smart Chain (BSC). Following the recent surge in BNB’s price, the blockchain has witnessed an increase in on-chain activity as more users have started interacting with the network, driving the momentum forward.
However, data from DefiLlama shows a decrease in the total value locked (TVL) on the network due to an 11% drop in BNB from its all-time highs. The chart indicates a 6.8% decline in BNB Chain’s TVL between June 6 and June 10, suggesting reduced interaction by users and developers.
While BNB Chain remains a strong player among layer-1 blockchains, data from DappRaddar reveals a 21% decrease in transaction volume over the last 30 days to 9.9 million. The number of unique active wallets (UAW) interacting with the blockchain’s smart contracts has also decreased by 14% to 1.46 million, trailing behind Ethereum and Base.
The Binance crypto exchange has been experiencing a decline in trading volumes, possibly due to regulatory challenges in the US and Nigeria. Market share data from CCData indicates a 17.3% drop to $1.68 trillion in May, marking the second consecutive month of decline. CoinGecko data shows a more than 83% decrease in daily trading volume on the Binance exchange from $61.05 billion on March 15 to $10 billion on June 10.
Technically, the recent losses in BNB signal the invalidation of a breakout from an ascending triangle pattern, triggered by profit-taking after reaching new all-time highs. The price is currently testing support at $633, and if it breaks, the token may drop towards the trendline at $600, around 7.6% lower than the current levels.
Furthermore, the sharp decline in BNB’s daily relative strength index (RSI) from overbought levels to 55 suggests a potential further correction in the price in the near future. It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.