Why is BNB price down today?
The price of BNB (BNB) is falling again in a six-day rally following a new record high of $725 on June 6. BNB has since dropped to $635 intraday. According to data from CoinMarketCap, at the time of writing, the price was around $643, down 5% in the last 24 hours.
BNB's performance has been brutal over the past month, with the Layer-1 token up 10% over the past 30 days and 25% in June alone, reaching $725 on June 6 – its highest price since November 2021. However, the recent rally in profit booking has seen the price drop further downside risks.
BNB Smart Chain activity has decreased
Despite overcoming the negative effects of regulatory challenges on the brand, Binance managed to maintain its strength. As a result, his BNB Smart Chain (BSC) activity has also seen a resurgence.
Following BNB's recent price increase, the blockchain experienced on-chain activity as more users joined the network, contributing to the increased speed.
However, according to data from Defillama, the total value locked on the network (TVL) in BNB has dropped by 11% to an all-time high.
The chart above shows that BNB Chain TVL decreased by 6.8% between June 6 and June 10, indicating that users and developers are less engaged with the network.
Although BNB Chain remains a powerhouse among Layer-1 blockchains, data from Dapradar shows that its transaction volume has decreased by 21% over the past 30 days to 9.9 million.
Unique Active Wallet (UAW) is a metric that Dapradar uses to describe how many individual crypto wallet addresses are connected to blockchain smart contracts.
The figure above shows that BNB Chain follows Ethereum in total UAWs. More than 1.46 million UAWs have interacted with the protocol, a 14 percent decrease over the past 30 days. This is far less than the 2.05 million UAWs and 3 million Bases on Ethereum.
Binance exchange experiencing reduced trading volume
Binance crypto exchange appears to be losing market share as regulatory challenges in the United States and Nigeria continue to negatively impact its operations. In the year After a wild legal ride in 2022 with former Binance CEO Changpeng Zhao in jail and one of its executives indicted in Nigeria, the exchange seems to be losing market share.
According to data from CCData, Binance's market share fell 17.3% to $1.68 trillion in May, falling for the second month in a row.
This is confirmed by data from CoinGecko as the daily trading volume on the Binance crypto exchange dropped by more than 83% from $61.05 billion on March 15 to $10 billion on June 10.
RELATED: BNB, TON, FIL and INJ Bitcoin price could go much higher if $69K flips.
The BNB ascending triangle market setup is not worth it
From a technical point of view, today's loss in BNB indicates that the price's divergence from an ascending triangle was triggered by profit-taking after hitting new all-time highs.
At the time of publication, the price of BNB is supporting the horizontal line of the technical formation at $633, so it is possible to return to the upside triangle.
If this support line is broken, the Layer-1 token may drop 7.6 percent from current price levels to an uptrend at $600 on the chart pattern.
Additionally, BNB's daily Relative Strength Index (RSI) current decline from overbought levels of 80 to 55 suggests that a further price correction is likely in the near term.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
