BNB Price News: BNB Eyes Drop to $500 as Social Volumes Shrink by 60%

BNB (BNB) has gone down by just 2.5% in the past 7 days, but investors’ lack of interest in the token could further plunge its price in the next few days.

Macroeconomic conditions have worsened in the United States, as inflation more than doubled the Federal Reserve’s target rate last month.

Analysts now expect that the Fed will hike rates by September to keep prices from spiraling out of control.

Higher rates tend to depress the price of risky assets, as it reduces liquidity due to higher financing costs. In addition, it has a negative impact on investors’ appetite for risk.

BNB ETF Fails to Attract Investors’ Interest

The price of BNB spiked a few weeks ago after the launch of the first exchange-traded fund (ETF) in the United States linked to this token.

However, sentiment soured as the new head of the Fed abstained from providing guidance regarding future interest rate decisions, while he also claimed that inflation is a “choice” for the central bank.

The crypto market interpreted this as a hawkish sign, and prices plunged as a result.

In response, investors are shunning altcoins and allocating capital somewhere else. This is reflected by social volumes, a metric that tracks the number of times that a token’s name is mentioned across websites, social media, and messaging boards.

According to data from Santiment, BNB social volumes have declined by 61% in the past 7 days alone. This could set the stage for further downside, as buying interest seems to have declined sharply.

Net inflows to the new BNB ETF confirm this, as this vehicle has received zero dollars from investors since June 12. Moreover, the Fear and Greed Index has swung to Extreme Fear territory.

All of these bearish signals are piling up. Paired with a deteriorating macro backdrop, altcoins could be poised to experience a sustained downturn.

Drop to $520 Seems Likely as RSI Sends Sell Signal

Looking at the daily chart, the price action has broken below the $600 support and could be on track to hit $520 in the next few days.

The Relative Strength Index (RSI) has dropped to 33, which is typically interpreted as a sell signal. This sharp drop started after a rejection of a move above the 200-day exponential moving average (EMA), confirming that sellers are still in control of the narrative.

Meanwhile, on June 5, a death cross between the 20-day EMA and the 50-day EMA confirmed that the downtrend was accelerating. When this technical crossover happens, it indicates that bearish momentum is gaining traction.

If the $520 falters in the next few days, the next demand zones to watch would be $400 and $320, meaning a total downside risk of 38% in the mid-term if the downtrend continues.