BNB (BNB) price is trending lower again after a six-day rally that saw it hit a new record of $725 on June 6. Afterwards, BNB fell to an intraday low of $635. At the time of this writing, the price was hovering around $643, down 5% in the past 24 hours, according to data from CoinMarketCap.
BNB’s performance has been strong over the past month. The layer 1 token surged 10% in the last 30 days and 25% in June alone, reaching $725 on June 6. This is the highest since November 2021. The recent rally has pushed prices lower with further downside risk.
Decrease in BNB Smart Chain activity
Despite overcoming the negative impact regulatory issues have had on its brand, Binance has remained resilient. As a result, BNB Smart Chain (BSC) has also become active again.
Following BNB’s recent price surge, the blockchain’s on-chain activity has increased as more users join the network, contributing to its growing momentum.
However, data from DefiLlama shows that BNB’s 11% decline from its all-time high has resulted in a decline in the network’s total value locked (TVL).
The chart above shows that TVL on the BNB chain decreased by 6.8% between June 6 and June 10. This indicates that users and developers are interacting less with the network.
Although the BNB chain maintains a strong position among layer 1 blockchains, data from DappRaddar shows transaction volume has fallen 21% to 9.9 million over the past 30 days.
Unique Active Wallets (UAW) is a metric that DappRadar uses to express the number of individual cryptocurrency wallet addresses interacting with smart contracts on the blockchain.
The figure above shows that the BNB chain is trailing Ethereum in total UAW. More than 1.46 million UAWs interacted with the protocol, a 14% decrease over the past 30 days. This is significantly lower than Ethereum’s 2.05 million UAW and Base’s 3 million UAW.
Binance exchange with decreased trading volume
Binance cryptocurrency exchange appears to be losing market share as regulatory issues in the US and Nigeria continue to negatively impact its operations. The exchange appears to have lost volume market share following a bitter legal battle in 2022 that saw former Binance CEO Changpeng Zhao jailed and one of its executives indicted in Nigeria.
Binance’s market share fell for the second straight month, down 17.3% in May to $1.68 trillion, according to data from CCData.
This is corroborated by data from CoinGecko, which shows that daily trading volume on the Binance cryptocurrency exchange fell by more than 83%, from $61.05 billion on March 15 to $10 billion on June 10.
Related: If the Bitcoin price rises to $69,000, BNB, TON, FIL and INJ could rise even further.
BNB invalidates market setup in ascending triangle
From a technical perspective, BNB’s losses today mean that the price breakout in the ascending triangle triggered by profit booking after hitting all-time highs has been nullified.
At the time of publication, the price of BNB was fighting a possible profit within the range of an ascending triangle, with the horizontal line of the technical structure at $633 providing support.
If this support is broken, the layer 1 token could fall towards the ascending trend line of the dominant chart pattern at $600, approximately 7.6% down from the current price level.
Additionally, the sharp drop in BNB’s daily Relative Strength Index (RSI) from overbought territory of 80 to its current value of 55 suggests that a continued price correction is more likely in the near future.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.