- BNB fell more than 6% in 24 hours due to widespread market carnage.
- Positive comments about the coin have increased dramatically over the past 24-48 hours.
Binance Coin (BNB) has suffered significant losses over the past 24 hours as the native token of the Binance ecosystem has been hit by a widespread market downturn.
The fourth-largest cryptocurrency by market capitalization fell more than 6% in 24 hours, according to data from CoinMarketCap.
However, on a month-to-month basis, this coin performed relatively better compared to other major coins, nursing losses of only 6%.
That said, BNB could see healthy gains in the short to medium term as the major chapter that has recently fueled significant FUD for the coin reaches its conclusion.
Short-term bullish catalyst?
Changpeng Zhao, the former president of Binance, popularly known as CZ, was sentenced to four months in prison on charges brought against him by the US government.
The charges were serious, including violation of anti-money laundering regulations that allow illegal transactions on the exchange.
News of the announcement created a buzz in social circles. According to AMBCrypto’s analysis of Santiment’s data, there has been a sharp surge in mentions of BNB on cryptocurrency-focused social channels.
Interestingly, positive commentary on the coin has exceeded the bearish outlook as weighted sentiment enters positive territory. This gave the market a more favorable view of BNB’s next move.
Source: Santiment
Futures traders not hoping for a quick rebound
BNB sentiment in the derivatives market continued to be weak.
Using Coinglass’ Long/Shorts Ratio indicator, AMBCrypto has seen a significant increase in the number of traders shorting cryptocurrencies over the past 24 hours.
Source: Coinglass
Read Binance Coin (BNB) Price Prediction for 2024-25
Open interest (OI), the amount invested in BNB’s active futures contracts, decreased 1.27% over the past 24 hours to $564 million.
This could be due to a broader market downturn, but if sentiment improves, investments in BNB may trickle down.