Introduction of BNB

BNB, also known as Binance Coin, is a token (platform coin) launched by Binance Exchange to promote the development and use of the exchange ecosystem. BNB coins circulate within the exchange and can be used to pay transaction fees, participate in voting, purchase ICOs, etc.

At the beginning of its creation, BNB coins issued 100 million in the form of ICO, with a total of 200 million, and existed in the form of ERC-20 on Ethereum. After Binance developed its own main network and Binance Smart Chain (BNB Smart Chain), BNB coins can also operate on the BEP-20 blockchain.

BNB is the fourth largest cryptocurrency in the market, after Bitcoin, Ethereum, and Tether. Let’s take a look at BNB.

Binance [BNB] Chain remains ahead in key network growth, ranking first in total unique addresses in August. According to recent data, the chain’s number of unique addresses reached 463.7 million.

The chain also ranked fourth in total transactions, with 209 million transactions in July.

This suggests an increase in network traction, which is not surprising given the active Binance Launchpool and Launchpad projects on the chain. Interestingly, the Binance network’s rise also coincided with June’s record price of $721.

So, how has recent network traction impacted BNB price performance?

BNB Price Analysis

Over the past week, BNB has fallen by more than 24%. Today’s price for BNB is $439.38, with a 24-hour trading volume of $4.88 billion, a market cap of $64.84 billion, and a market dominance of 3.47%.  The price has decreased by 16.31% over the past 24 hours.

Downward pressure on Emirates Bank (BNB) was part of a broader market rout sparked by concerns about a U.S. recession and tensions in the Middle East.

Therefore, the recent network pull cannot alleviate the recent BNB price plunge. If this carnage continues, BNB may break through the daily order block (marked in cyan) and exceed $505.

A break below the support could drag BNB down to the July low of $454.

Interestingly, the RSI (Relative Strength Index) has retreated near the oversold territory, which means that the selling pressure may have peaked and reversed.

Similarly, CMF (Chaikin Money Flow) also declined but did not fall below average, indicating an increase in outflows from the BNB market.

However, if it does not fall below the average, especially if market sentiment improves, it could signal a possible price reversal.

Futures Market Status

As the price chart shows, similar to the massive sell-off in the spot market, the futures market is also bearish on BNB. At press time, 53.8% of leveraged traders are short the altcoin, while 46% of speculators are long the altcoin.

Meanwhile, tensions in the Middle East could escalate on August 5. If so, the cryptocurrency market will react to developments.

Despite this, market sentiment is extremely panic-stricken, and under normal circumstances, some people would see this as an opportunity to rush in and buy.

However, it may be crucial to assess developments in the Middle East and the United States before taking action.