The BNB underwent a significant correction, with the price dropping from US$ 900 to around US$ 700 in the last sessions. The decline erased months of gains and brought the asset to a seven-month low.
Although selling pressure has prevailed, the negative movement may not be over if investor behavior does not change. Initial on-chain trends indicate that the scenario could still change.
BNB registers an increase in the number of new investors
BNB's network activity has shown strength even with the price drop. The creation of new addresses has grown consistently in recent days, reaching almost 1.3 million additions. Currently, the network continues to add more than 1 million new addresses daily. This advancement indicates ongoing interest during a period of intense volatility.
New addresses are relevant because they tend to represent fresh capital entering the ecosystem. While old investors face pressure to sell, new participants can help absorb the supply. Historically, strong network growth during correction phases has contributed to stabilization. In the case of BNB, the influx of this flow can offset the distribution, as long as buying interest remains.
Despite the growth in on-chain participation, derivatives data remains pessimistic. Positioning in the futures market clearly points to a risk of decline. Liquidation maps show about $43 million in liquidations of short positions, compared to only $6 million in long positions. This imbalance reflects a bearish conviction among leveraged traders.
This type of positioning often increases volatility. If the price continues to fall, liquidations of long positions may accelerate the losses. The map shows the highest concentration of long contracts at $682, the next support for BNB. If this level is lost, other long liquidations could total $3.07 million. In the current scenario, the predominance of selling exposure requires caution.
Correction in the price of BNB may continue
The price of BNB has dropped by 22.5% in the last seven days and is trading around $698 at the time of this report. Technical indicators suggest persistent weakness. The Fibonacci Extension tool indicates $682 as the next major support, making this level essential for short-term stability.
If the overall market scenario remains negative, the risks of a downturn increase. New liquidations or greater volatility may push BNB below $682. Breaking this level, the trend is for the price to reach $650 or less. This movement would widen the losses and reinforce the pessimistic perception among short-term investors.
A possible recovery depends on the influx of capital managing to neutralize the selling pressure. If demand gains strength, BNB could recover to $735 and aim for $768. Turning this last level into support would invalidate the negative scenario. Thus, the price of BNB could advance to $821, indicating a resurgence of confidence among participants.
The article 'BNB Price Hits 7-Month Low' was first seen on BeInCrypto Brazil.