BNB Road To Recovery: Can It Thrive Amid Declining Network Engagement?

Christian Encila

Last Updated: September 8, 2023 6:40 am

3 mins read

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Binance Coin (BNB) finds itself in a precarious position, with its price rebound heavily contingent on a resurgence in network activity for BNB Chain. The decline in network activity has played a pivotal role in hindering price momentum for BNB, leaving investors and enthusiasts eager for a turnaround.

BNB’s recent price action has been characterized by extended periods of sideways movement. The bears have proven resilient at the resistance level, preventing prices from breaching the $225 mark.

Currently, BNB is trading at $216.80, according to CoinGecko, with 24-hour gains of a modest 0.8%. Over the past seven days, the coin has seen a marginal decline of 0.1%, leaving investors and enthusiasts eagerly awaiting signs of a potential price rebound.

BNB seven-day price action. Source: Coingecko

BNB Hinging On Bitcoin’s Performance

For bulls hoping to witness an upward movement in BNB’s price, their hopes might rest largely on Bitcoin’s shoulders. A significant breakthrough for Bitcoin above the $26,000 mark could inject much-needed bullish sentiment into the broader market, potentially benefiting BNB in the process.

Technical price analysis paints a rather bleak picture for BNB. The Relative Strength Index (RSI) reflects the lack of demand for BNB, with a brief spike above the neutral 50 on August 30 quickly followed by a decline below the neutral 50. As of the latest data, the RSI remains in this bearish territory.

Additionally, the On-Balance Volume (OBV) has witnessed significant drops in trading volume, both in early June and late August. These sharp declines have contributed to BNB’s lateral price movement, further reinforcing the prevailing bearish market structure.

BNB market cap currently at $33 billion. Chart: TradingView.com

Regulatory Woes And Executive Exodus

Adding to BNB’s challenges is the regulatory scrutiny Binance, the platform behind BNB, has been facing recently. The exchange has been in the crosshairs of regulators worldwide, and the situation has been exacerbated by the departure of several high-ranking executives.

Mayur Kamat, Binance’s head of product, is the latest in a string of senior executives to leave the company, marking the fourth such departure.

As BNB grapples with these obstacles, experts in the field predict that the coin may experience further downward pressure. According to a price report, some experts anticipate BNB’s price to drop to $208 by September 19.

Binance Coin’s prospects remain uncertain as it navigates a challenging landscape characterized by declining network activity, technical indicators flashing warning signs, regulatory hurdles, and executive departures.

The fate of BNB appears intertwined with the broader cryptocurrency market’s performance, and investors and enthusiasts will be closely monitoring developments in the coming weeks.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.