HomeBinanceWhat is causing the decrease in BNB price today?

What is causing the decrease in BNB price today?

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Factors Contributing to BNB’s Price Decline and Potential Impact on Market Share

The price of BNB (BNB) is on a downward trend once again after a three-day rally that saw it reach a high of $590 on July 1. BNB has now dropped to an intra-day low of $552 on July 3, marking a 3.75% decrease over the last 24 hours.

BNB’s recent performance has been bearish, with the layer-1 token falling 12% over the last 30 days and facing the risk of deeper corrections. Several factors are contributing to this downward trend, including decreasing activity on the BNB Chain.

Data from DefiLlama shows a decrease in the total value locked (TVL) on the BNB Chain, dropping by 11% from $108.82 billion on June 6 to $96.75 billion on July 3. This suggests that users and developers are interacting less with the network. Additionally, DappRaddar data reveals a 25% decrease in BNB’s DApp volume over the last seven days, indicating a decline in user engagement and activity.

Furthermore, Binance crypto exchange is losing market share to competitors like Bitget, Crypto.com, and ByBit, with Binance seeing only a minor uptick of 6.0%. Regulatory challenges in the United States and Nigeria have negatively impacted Binance’s operations, leading to a decrease in daily trading volume.

From a technical standpoint, BNB’s price action has invalidated a bull flag pattern, signaling a possible drop towards the start of the flag at $600. The daily relative strength index (RSI) for BNB has also dropped from overbought levels to 57, indicating a preference for downside movement.

Overall, the combination of decreasing onchain activity, loss of market share, and technical indicators suggest a challenging road ahead for BNB’s price. Investors and traders should conduct their own research and exercise caution in light of these developments.

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