Binance coin [BNB] it has not been spared from the prevailing selling pressure that has engulfed the cryptocurrency market. In fact, according to data from Coinglass$ 1,057,144 has been liquidated by the BNB market in the past 24 hours.
This, in the wake of the ongoing wave of daily liquidations in the general cryptocurrency market. These have become even more pronounced since August 19th. At the time of writing, BNB was trading hands at $ 290.74, up a paltry 1% over the past 21 days.
Investors, prepare for impact!
A look at the daily chart indicated a bleak period for the next few weeks for the fifth largest cryptocurrency. According to TradingView data, the intersection of the MACD line with the trend line in a bearish curve on August 14 indicated the start of a new bearish cycle.
Investors who pump liquidity into an asset through sustained accumulation of assets can help guide its price. Since the start of the month, price movements on the daily chart have indicated that low liquidity has been injected into the BNB market. Over the past 21 days, the key indicators to consider when analyzing buying / selling behavior have steadily declined, showing a decrease in buying pressure.
At the time of writing, BNB’s Relative Strength Index (RSI) stood at 46. Its Money Flow Index (MFI), closest to oversold ground, has been spotted at 37. Its Chaikin Money Flow (CMF) ) which has since followed a downward trend the month started, recorded a value of -0.14. Positions marked with these key indicators revealed that the overall market downtrend had an impact on BNB as more investors decided to distribute coins to recoup their profits.
Source: TradingView
Are there any problems ahead?
After a 6-month dormancy period for the coin, BNB went into action in July, with the bull run forcing its price up double digits. However, after that run, BNB reverted to dormancy as the average age of the coin, in an increasing slope, showed inactivity for this major coin.
Although an increasing slope signals the accumulation of tokens at the network level, a prolonged slope is a sign of dormancy and consequent price stagnation.
In the wake of this month’s performance, price stagnation has already reared its ugly head for BNB.
Source: Santimento
While there has been minimal price action so far this month, a sizeable number of BNB holders still remain in profit, according to Santiment.
In fact, the 30d MVRV had a reading of + 11.79%. BNB-weighted sentiment also remained positive, despite the gloomy appearance of the overall market.
Source: Santimento