Key Insights
BNB has dropped over 11% in December and is now trading nearly 38% below its yearly high, adding pressure on near-term support.
BNB Chain transactions have declined by 47% since October, signaling reduced activity and waning interest from users and developers.
Futures open interest has dropped by over 50%, suggesting traders are closing positions and reducing leverage amid bearish sentiment.
BNB has declined over 11% from its December peak of $923.8, touching a low of $821.7 on December 19. The fourth-largest cryptocurrency by market capitalization has since recovered slightly to $849.2. However, it remains under significant pressure as it trades nearly 38% below its yearly high recorded in October.
Network data shows a marked slowdown in user engagement. According to BscScan, the number of transactions on the BNB Chain has fallen by approximately 47% since October. At press time, total transactions stood at 16.1 million. A consistent drop in activity may reflect declining user and developer interest, which often impacts token demand.
Futures open interest sees a sharp decline
Derivatives market data reveals further strain. CoinGlass reports that BNB futures open interest has dropped from $2.97 billion in October to $1.27 billion. This decrease in leveraged exposure suggests that traders are scaling back positions, likely due to broader bearish sentiment. The fall in open interest typically reflects reduced trading appetite and confidence.
Source: TradingView
On the technical chart, BNB is approaching a trendline that has served as a consistent support level since April. Currently, the price is only 2.7% above this support. A failure to hold this level may trigger a decline toward $729.3, representing a potential 15% drop from the current price. This level aligns with the second low observed in August.
Indicators point to bearish momentum
Technical indicators confirm a weakening trend. The MACD lines have fallen below the zero mark, signaling reduced momentum. Simultaneously, BNB has dropped beneath the Supertrend indicator, which has turned red—indicating that the bearish structure remains intact.
Despite short-term pressure, BNB continues to make strides in real-world asset integration. The BNB Chain now supports BlackRock’s tokenized treasury fund, enhancing its appeal to institutional participants. Additionally, BNB’s auto-burn mechanism continues to gradually reduce its circulating supply, creating potential for long-term value support.
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