Binance Coin price rose for the third consecutive day and reached its psychological point at $850.
Summary
- Binance Coin price has formed a descending triangle pattern.
- It is also about to form a death cross pattern.
- Key BSC metrics like transactions and fees have plunged.
Binance Coin (BNB) token was trading at $856, down by nearly 40% from its highest point this year. This crash has coincided with the ongoing crypto market crash and its deteriorating metrics.
Data compiled by Nansen shows that activity in the BNB Smart Chain has deteriorated in the past few months. For example, the network handled over 402 million transactions in the last 30 days, down by 83% in the last 30 days.
Like with Ethereum, the network’s fees dropped by 17% in the last 30 days to over $14.3 million. Its fees collection was the second highest after Tron (TRX), which made $29 million in this period.
More BSC Chain metrics have deteriorated in the past few months as crypto prices slumped. The total value locked in the network has dropped from the year-to-date high of $12.2 billion to the current $8.9 billion. It has dropped to the lowest level since July.
Meanwhile, its DEX volume has continued falling in the past few months. It dropped to a low of $55 billion this month, down sharply from the year-to-date high of $118 billion.
More data shows that the futures open interest of the BNB token has dropped to over $1.3 billion, down from this year’s high of $2.7 billion.
Binance Coin price technical analysis
The daily chart shows that the BNB price has slumped in the past few months. It has slumped from a high of $1,373 to the current $855.
Binance Coin has formed a descending triangle pattern, a common bearish continuation sign. It is also about to form a death cross pattern as the spread between the 50-day and 200-day moving averages narrows.
Therefore, the coin will likely have a bearish breakout in the near term. This view will be confirmed if it drops below the lower side of the triangle at $817. A move below that level will point to more downside, potentially to the 78.6% retracement point at $695.
