Tech

Good days for BNB holders might end soon- Here’s why

10/07/2022
Bitcoin Ethereum News

BNB recently posted a tweet mentioning all the new developments that have happened in its ecosystem. According to the tweet, over the last seven days, nearly 1495 BNB tokens were burned.

The altcoin also witnessed a growth in its total addresses as more than 1.73 million new addresses joined the network. Moreover, BNB’s total value locked increased and reached the $5.45 billion mark. 

All these positive developments were reflected in BNB’s price trajectory. Its weekly chart was painted green. Additionally, BNB was the top gainer last week among the top five cryptos in terms of market capitalization, registering nearly 5% week-over-week growth.

At press time, the alt was trading at $294.17. However, despite these positive developments, things might soon get darker for BNB as several of its on-chain metrics suggest a trend reversal in the coming days. 

Metrics at play

BNB’s MVRV Ratio registered a decline over the last week, which is a bearish signal. Not only that, but BNB’s volume also followed a similar route and went south during the past seven days. 

Source: Santiment

After marking a spike at the beginning of this month, BNB’s social volume also decreased. Thus, reflecting the diminishing interest from the crypto community in the token. However, the positive news was that BNB’s development activity managed to register an uptick lately. 

Source: Santiment

On the other hand, CryptoQuant’s data revealed that things were not quite good for BNB as both its Relative Strength Index (RSI) and stochastic were in an oversold position, which shows that a price decline in the coming days could be imminent. 

Here’s AMBCrypto’s Price Prediction for BNB for 2023-24

Despite all these negative developments, BNB’s popularity remained unharmed as it recently topped the list of most used smart contracts for the top 1000 biggest BSC whales on 6 October.

Going forward

Curiously, a few market indicators were also in favor of a price plummet soon, while others supported the possibility of a continued uptrend.

For instance, BNB’s Chaikin Money Flow (CMF) registered a downtick and was moving toward a neutral position. Interestingly, On Balance Volume (OBV) also followed the same route and went down, both of which are bear signals, suggesting an upcoming price drop.

The reading of the MACD indicator supported the bears. Moreover, the Exponential Moving Average (EMA) Ribbon indicated that after a long tussle, the 20-day EMA finally managed to go above BNB’s 55-day EMA. The chances of a short uptick can’t be ruled out. 

Source: TradingView

Source: https://ambcrypto.com/good-days-for-bnb-holders-might-soon-end-heres-why/