Binance Coin [BNB] has not been spared from the prevailing selling pressure that has overwhelmed the cryptocurrency market. In fact, according to data from Coinglass, $1,057,144 was liquidated from the BNB market in the last 24 hours.
This, on the back of the ongoing wave of daily liquidations in the general cryptocurrency market. These have become even more pronounced since 19 August. At the time of writing, BNB was exchanging hands at $290.74, hiking by a meagre 1% in the last 21 days.
Investors, brace for impact!
A look at the daily chart pointed to a gloomy next few weeks for the 5th largest cryptocurrency. As per data from TradingView, the intersection of the MACD line with the trend line in a downward curve on 14 August indicated the start of a new bear cycle.
Investors pumping liquidity into an asset by sustained asset accumulation can help drive its price. Since the beginning of the month, price movements on the daily chart have indicated that low liquidity has been thrown into the BNB market. Over the course of the last 21 days, the key indicators to look at to analyze buying/selling behavior has declined consistently, showing waning buying pressure.
As of this writing, BNB’s Relative Strength Index (RSI) stood at 46. Its Money Flow Index(MFI), closer to the oversold terrain, was spotted at 37. Its Chaikin Money Flow (CMF) which has since taken on a downtrend since the month started, posted a value of -0.14. The positions marked by these key indicators revealed that the general bearishness of the market had impacted BNB as more investors have taken to coin distribution to recoup profit.
Is there trouble ahead?
Following a 6-month-long period of coin dormancy, BNB got some action in July, with the bull run forcing its price to climb by double digits. However, following that run, BNB returned to dormancy as the Mean Coin Age, in a rising slope, showed inactivity for this leading coin.
Although a rising slope signals network-wide token accumulation, a prolonged one is a sign of dormancy and a consequential price stagnation.
On the back of this month’s performance, price stagnancy has already reared its ugly head for BNB.
While there has been minimal price action so far this month, a sizeable number of BNB holders remain in profit though, according to Santiment.
In fact, the 30d MVRV had a reading of + 11.79%. Weighted sentiment for BNB also remained positive, despite the gloomy looks of the general market.