The BNB price is attempting to rebound as investors attempt to buy the dip. The Binance Coin price is trading at $358.98, which is about 6.58% above the lowest level this week. Today is its first day in the green since Friday last week.
Why is Binance Coin rising?
BNB is the native token for the Binance Smart Chain (BSc) network and the Binance trading platform. On the other hand, BSc is the second-biggest DApp smart contract platform after Ethereum.
According to DeFi Llama, the network has more than 98 DeFi platforms that have more than $15.35 billion of total value locked. In contrast, Ethereum has 223 DeFi platforms and a TVL of more than $116 billion.
The BNB price has declined substantially in the past few days because of the relatively underperformance of the DeFi ecosystem. In the past seven days, the TVL of most DeFi platforms in the network has declined by almost double-digits.
For example, PancakeSwap’s TVL has declined by 14% in the past 7 days while Venus and Tranchess have dropped by 17% and 5%, respectively.
The BNB price has also lagged because of the overall performance of cryptocurrency prices as the fear and greed index has dropped. Most digital coins like Bitcoin, Cardano, and Ethereum have all declined while the total market cap of cryptocurrency prices has fallen below $2 trillion.
BNB price prediction
The daily chart shows that the Binance Coin price has been in a bearish trend in the past few days. It has declined by 30% from its highest point this month. Along the way, it has declined below the 25-day and 50-day moving averages. It has also moved below the lower side of the bearish pennant pattern shown in black.
Therefore, this rebound seems like a dead cat bounce. I suspect that the coin will resume the downward trend as bears target the key support at $300. This view will be invalidated when it moves above $380.A closer look at its performance shows that my Binance Coin prediction in August was accurate.