The BNB price has been under pressure in the past few months as investors worry about its ecosystem growth. It’sIt’s trading at $378 for the past few days, 45% below its highest in December 2021.
BNB is a native token for the BNB Chain, initially known as Binance Smart Chain (BSc). It aids in creating decentralized applications (dApps) similar to those in the DeFi and NFT industries.
There are two main reasons why the BNB price has crashed in the past few months. First, there are concerns about the network’s ecosystem. In the past few months, it seems like BNB’sBNB’s ecosystem is no longer vibrant as it used to be.
BNB price crash is due to concerns about its ecosystem. It has not been as vibrant as before lately. For example, the total value locked (TVL) in its DeFi ecosystem fell to about $11 billion from its highest of over $30 billion a few months ago.
This is due to the impact of other chains way faster and with better features. It handles less than 45 transactions per second while others like Elrond, Near, and Avalanche process thousands.
Moreover, the BNB chain is known to compromise security, with various projects in its ecosystem having lost millions of dollars in previous years.
Secondly, similar to other cryptocurrencies, the BNB price fell due to the current hawkish Fed, which will wind up its monetary policy resolution on Wednesday this week.
Analysts trust the Fed will implement the first hawkish decision since 2018 to fight inflation. Historically, risky assets like BNB and Bitcoin are bound to fall in such an environment.
BNB price prediction
The daily chart indicates that the BNB price has been moving sideways, thus trading the same point as the 25-day and 50-day exponential moving averages. It has also formed a triangle pattern shown in black.
A closer look indicates a closeness to its confluence zone. Also, the BNB price has formed strong support at $337. Hence, this could mean an imminent breakout and a higher bounce back this week.