- BNB topped the list of cryptos in terms of LunarCrush’s Galaxy Score
- Positive sentiment around the coin spiked, but other metrics remained bearish
While bearish sentiment dominated the crypto market, BNB Chain dominated [BNB] suffered more than the others. Santiment’s recent tweet pointed out that BNB was down -15% since June 4, and that social dominance has surged as the asset has become quite polarizing. As the price of BNB fell, trading volume hit a five-week high.
📉 #BinanceCoin has been hammered in recent days compared to the rest of the markets. Now -15% since Sunday, social dominance has surged as the asset has become quite polarizing. $BNB trading volume is also at its highest level in 5 weeks. https://t.co/E7sU59lkRe pic.twitter.com/FL0Er5vmQa
— Santiment (@santimentfeed) June 7, 2023
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BNB refrains from going green
The downward trend continued as we went to press. According to CoinMarketCap, the price of BNB was down nearly 4% in the past 24 hours. It was accompanied by a 27% increase in trading volume.
At the time of writing, it was trading at $262.64 with a market cap of over $40 billion. A possible reason behind this negative price action could be the Securities and Exchange Commission (SEC) episode. The SEC accused Binance and its founder, Changpeng Zhao, of misusing user funds worth billions of dollars.
To wait! Here come the bulls..!
The latest data from LunarCrush pointed to a statistic that typically suggests a price increase. CryptoDiffer’s tweet mentioned that BNB topped the list of cryptos in terms of Galaxy Score. So there were opportunities for BNB to book price gains in the coming days.
TOP 15 coins from @LunarCRUSH Galaxy score
Galaxy Score is a proprietary score that continually measures crypto against itself against the community metrics pulled in from around the web#BNB $BNB $CRO $RNDR $SHIB $SIDUS $ORN #BABYDOGE $ATOM $ CURRENT #BTC $BTC $OCEAN… pic.twitter.com/Mft3LTB67W
— 🇺🇦 CryptoDiffer – StandWithUkraine 🇺🇦 (@CryptoDiffer) June 7, 2023
BNB’s Relative Strength Index (RSI) rose slightly from the oversold zone, which can be considered a positive signal. Moreover, the Chaikin Money Flow (CMF) followed the same trend and increased slightly. However, the Moving Average Convergence Divergence (MACD) indicator favored the bears. BNB’s exponential moving average (EMA) ribbon also showed a clear bearish advantage in the market.
Source: TardingView
It’s all in the air…
It was interesting to note that despite the massive price drop, positive sentiment around BNB has surged in recent days. However, the Market Value Realized Value (MVRV) Ratio was significantly lower, which was bearish.
Interest in whales in BNB also declined, as evidenced by the number of whale transactions. The coin’s velocity registered a decline, meaning that BNB was used less frequently in transactions within a given time frame.
Source: Sentiment
Read BNB’s 2023-24 Price Forecast
To add to the bearish sentiment, the CoinGlass chart gave more reasons to be concerned. According to the data, BNB’s open interest gained upward momentum.
Rising outstanding interest means that new or additional money is entering the market. Therefore, an increase in open interest means that the current market trend may not change anytime soon.
Source: Coinglass
