BNB loses its spot to Solana – Here’s why it’s not all bad news
Although the coin has slipped in crypto ranking by market cap, BNB has seen a 6% price growth in the last 24 hours.
- BNB now ranks below Solana in terms of market capitalization.
- BNB has witnessed a surge in demand in the past four days.
In another stunning upset, Solana [SOL] has rallied past Binance Coin [BNB] to become the fourth-largest cryptocurrency by market capitalization, AMBCrypto has found.
This comes just a day after SOL surpassed XRP to claim the fifth spot. At press time, SOL’s market capitalization was $42 billion. BNB trailed behind it with a market cap of $41 billion.
BNB holds its own
Although the coin has slipped in crypto ranking by market cap, BNB has seen a 6% price growth in the last 24 hours. Its trading volume has climbed by over 25% within the same period.
A look at the coin’s price movements on a 24-hour chart revealed that an uptrend commenced on 18th December. It has since grown by 16%.
At press time, the coin exchanged hands at $274, marking its highest price level since June, data from CoinMarketCap showed.
The surge in price since 18th December has been due to an uptick in demand for BNB, which its key momentum indicators have accurately depicted.
The coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested at overbought highs of 69.57 at 71.49 as of this writing.
At these values, these indicators showed that BNB accumulation has significantly outpaced coin sell-offs among daily traders.
Confirming the surge in demand for BNB in the past four days, its Accumulation Distribution Line (ADL) has since risen by 1%.
The ADL measures the underlying supply and demand of an asset, and it does this by determining whether traders are actually buying or selling the asset.
During periods of strong uptrend or downtrend, the ADL moves in the same direction as the price, confirming the current trend.
At 657.97 million at the time of writing, BNB’s ADL has trended upward with its price since the price rally began on 18th December.
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Further, the coin’s Chaikin Money Flow (CMF) has seen a significant jump since 12th December. At 0.33 at press time, it was spotted at its highest level since October 2021.
The upswing in BNB’s CMF in the past few days shows that coin buyers are actively entering the market with increasing liquidity, hence the price growth.
