BNB’s Price Performance Outshines BTC, But Traders Remain Bearish
Despite BNB’s impressive price performance compared to BTC over the last month, traders have continued to hold a bearish stance against the token. BNB outperformed BTC by 11.38% in April, reaching a trading price of $587.72. However, the token faced challenges such as extreme volatility, with its price fluctuating between $619 and $512 multiple times.
The decline in the Chaikin Money Flow and On Balance Volume indicators suggest a potential weakness in BNB’s price, with the possibility of a downtrend looming. If selling pressure continues, BNB may crash to the $511.5 level before rallying again. Additionally, traders have turned bearish against BNB, with the percentage of short positions increasing from 48% to 52%.
The state of the BNB network is also concerning, as the number of active addresses has declined by 21.6% in the last month. This decrease in network activity, coupled with a 33% drop in revenue generated, could negatively impact the overall ecosystem and create downward pressure for the token.
Despite BNB’s market cap in SOL terms, the current market conditions and network activity paint a challenging picture for the token’s future performance. Traders and investors will need to closely monitor these developments to make informed decisions regarding their BNB holdings.
