- BNB volume remains on the chart below $3 billion
- Volatility also remains low
Binance Coin (BNB) trading volume recorded a significant increase at the start of the month, reaching levels not seen since 2022. How has BNB performed since then and is there any evidence that points to the potential for significant price movement in the short term?
Binance Coin volume returns to normal
Analysis of Binance Coin volume on Santiment revealed a spike to over $11 billion on April 1. However, this increase was short-lived as subsequent analysis indicated a return to the previous volume range. Examination of the chart shows that volume has remained within the $2 billion threshold since the peak.
At the time of writing, volume was approximately $1.9 billion. Furthermore, there has been no significant price change since this peak.
Source: Santiment
The volatility on the chart is tightening
An analysis of the daily timeframe chart showed that Binance BNB’s price showed no significant reaction on the day volume peaked. In fact, the chart indicated a price drop of more than 5%, dropping the price from over $600 to around $570.
Source: TradingView
Subsequently, there was an attempt at price consolidation around $580. At the time of writing, BNB was trading around $583, down less than 1%. Moreover, an analysis of the Relative Strength Index (RSI) suggested that the company remained in a stable bull trend. Furthermore, examination of the Bollinger bands indicated minimal volatility, implying a reduced chance of sudden price swings.
Traders are cautious because…
An examination of the funding rate graph on Mint glass revealed a gradual return to the positive zone, indicating that BNB buyers had regained control of the market. At the time of writing, the coverage ratio was around 0.02%. However, this also indicated relatively weak sentiment, despite the bet on a price rise.
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Finally, an analysis of the price movements showed that there is currently no significant activity. At the same time, open interest hovered around $600 million, indicating moderate cash inflows.
These statistics collectively indicated that traders were not fully committed to BNB. So a major price move did not seem imminent for BNB, in line with the trends seen on the price chart.