This is a possibility, especially if the BNB bulls defend the $1k-support level. However, such a rally would require time to materialize.
Higher revenue over the past month hinted at a hike in on-chain activity.
Binance Coin [BNB] was forced to shed 3.91% of its value on Tuesday, 21 October. This price drop came on the back of Bitcoin’s [BTC] price seeing some volatility by rallying to $114k, before receding to $107.8k just a few hours later.
This was followed by a 6% bounce, then a 5.4% drop for Bitcoin over just 18 hours. This resulted in heightened volatility across the altcoin market too. In fact, some altcoins made new lows in the lower timeframe charts – A sign of weakness.
BNB was one of the alts that fell below the local support level – A worrisome development for bulls. The higher timeframe charts revealed bullish potential, but this may be dependent on the defense of key support levels.
On the 1-day chart, BNB saw a daily session close below $1,071 on Tuesday. This level marked the daily session close on the previous Friday, making Tuesday’s price action a bearish development.
Now, the trading volume has been strong over the past two weeks. Buyers were overwhelmingly strong during BNB’s rally to $1.3k, but the descent to $1k was also accompanied by notable selling pressure.
Since then, the OBV has retraced so deeply that at press time, it was below the lows made on 25 September, when Binance Coin was trading at $950. This may be another worrying short-term development for the bulls.
The BNB Chain remains a relevant network in the crypto ecosystem. The number of token holders has been steadily rising in recent months despite market volatility, showing trust in the token.
Data from Token Terminal also revealed that the network revenue over the past month was significantly higher than in recent months, stretching back to March. This highlighted high activity on-chain and suggested that investors may have reason to remain bullish on the ecosystem and the token.
In other news, BNB Chain announced a strategic partnership with Better Payment Network [BPN] to connect enterprise payments, FX settlement, and on-chain liquidity. This enables faster, more efficient cross-border settlements.
According to Rica Fu, Founder of BPN,
