Binance coin (BNB) price has gained a bearish momentum after the BTC flash crash on Thursday night. The slump in the biggest cryptocurrency has sucked the air out of most altcoins, sending them to their fresh 52-week lows. After a 6.07% drop on Thursday, the BNB appears to have entered into consolidation.
Many analysts were predicting a major correction in BNB price amid a lot of negative news. Binance coin is the native asset of the Binance Smart Chain, which was launched by the biggest digital asset exchange, Binance. The recent actions of the SEC and other global regulators have generated some strong headwinds for the L1 asset.
BNB Coin Shows Strength Compared To Bitcoin
A look at the following BNB/BTC reveals that Binance coin is holding up very nicely in terms of Bitcoin. This shows that the investors are preferring BNB over BTC, which is a sign of strength. After rising 1.4% on Thursday, the fourth-biggest cryptocurrency once again outperformed Bitcoin on Friday. However, in its USD pair, it still showed a minor loss.
After breaking below the downward trendline on BNB/BTC chart, Binance coin is once again retesting the trendline. Reclaiming this trendline may generate a strong bounce in the smart contract cryptocurrency if the BTC price doesn’t go lower. Currently, BNB is the 4th largest digital asset in terms of market capitalization.
Binance Smart Chain TVL Is Down 87%
The latest data from the DeFi data tracking site, DeFi Llama, shows that currently, Binance Smart Chain has a $2.86 billion total locked value (TVL). This figure is almost 87% below the 2021 all-time high of $21 billion. While most of this TVL decrease can be attributed to the slump in Binance coin price, the rest points toward a decrease in network activity.
The decreased on-chain activity on BSC has lowered the demand for BNB which is the native asset for the Layer 1 smart contract platform.
Binance Coin Price May Drop To $185
A high timeframe technical analysis of the BNB chart shows that the token has been changing hands inside a broad trading range since June 2022. The top of this range lies at $338, which has resulted in multiple rejections during this time. Binance coin price prediction would remain bearish as long as the price trades below the mid of this range, which lies at $251.
If the bearish momentum sustains, the next target could be the $185 level. This is the lowest point of the high timeframe accumulation range and may act as a strong support level. The following chart also reveals a weekly support level of $220.7, which makes this week’s candle closure very critical.
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