BNB Coin price prediction as ecosystem transactions retreat
The BNB Coin price retreated slightly as cryptocurrency momentum waned. The token is trading at $316, which is slightly lower than this week’s high of $336. It has fallen by more than 52% from its all-time high, bringing its market cap to about $53 billion.
BNB transactions falling
BNB is the native token for the BNB Chain, which was formerly known as the Binance Smart Chain. It is a popular blockchain platform that is an alternative to Ethereum.
Because of Bitcoin’s strong name recognition, BNB Chain has become a popular platform among developers. This is despite the fact that there are many alternatives like Solana and Avalanche that have faster speeds and lower transaction costs.
Ther are many decentralized applications that have been built using the BNB Chain. Some of the most popular games built using the network are MOBOX, SecondLive, and BinaryX among others. In DEX, apps like PancakeSwap, Biswap, and ApeSwap have been built using BNB. Other popular apps are Venus, Alpaca Finance, and Cream Finance among others.
The BNB Coin price has been in a strong bearish trend in the past few months as investors have grown concerned about the Federal Reserve. The bank has insisted that it will continue hiking interest rates and start winding down its asset purchases.
Further, there are concerns about its key industries like DeFi, NFTs, and the metaverse. In the past few weeks, the TVL in DeFi has declined sharply. The situation worsened recently after the collapse of Terra and its ecosystem. Similarly, recent data show that the NFT industry has become relatively weak.
There is also evidence that the number of BNB transactions has been in a downward trend as shown in the chart below. Further, since BNB is widely used in Binance, transactions in that ecosystem has declined as well.
BNB price prediction
On the daily chart, we see that the BNB price has been in a strong bearish trend in the past few days. The coin formed an inverted cup and handle pattern that is shown in black. Historically, this pattern is usually a bearish sign. The current price is notable since it is along the lower side of this cup. This means that it has formed a break and retest pattern.
Therefore, the BNB price will likely resume the bearish trend as bears target the key support level at $250. A move above the resistance at $360 will invalidate the bearish view.