BNB Price News: Weak On-Chain Metrics Threaten BNB’s Rally

BNB (BNB) has gone up by 4% in the past week but has once again dropped below the psychological $900 support as the token has taken a breather after 10 out of 12 days of finishing with green candles.

The price seems to have hit a strong sell wall at $920 – an important level from a technical standpoint that would have confirmed a trend reversal if broken.

On-chain metrics show a dramatic decline in the BNB Chain’s daily transaction volumes. Network activity peaked at 31.3 million transactions on October 8, but now stands at around 14.4 million.

This decline suggests that activity within the BNB ecosystem has dramatically dropped. Depressed transaction volumes favor a bearish outlook and have been one of the reasons why the BNB token has been steadily declining since it hit a new all-time high at $1,360.

PancakeSwap’s DEX Volumes Drop Sharply

Stablecoin reserves within the BNB Chain have expanded rapidly in the past year, moving from $6.9 billion in January 2025 to $13.3 billion at the time of writing.

They peaked at $14 billion in October, before the flash crash, and have also been decreasing since then, possibly as investors have taken money out of the ecosystem entirely.

Ethereum’s competitiveness in the DeFi space has strengthened lately as a result of the Pectra and Fusaka upgrades. This plays against BNB Chain’s long-term outlook as the latter has struggled to compete with Ethereum on this front and with Solana in the meme coin space.

Thus far, it has not been able to excel in either. The ‘crown jewel’ of its ecosystem is PancakeSwap, the largest BNB-native decentralized exchange (DEX).

However, the latter’s trading volumes have been dropping from a peak of $31 billion during the second week of October to just $6 billion last week. This dramatic decline in traders’ activity within the ecosystem favors a bearish outlook for the network as a whole as well.

BNB Remains in Consolidation Until Otherwise Confirmed

The daily chart shows that BNB has been consolidating and trading in a tight range between $920 and $820 in the past two months, at least.

The key resistance to watch for this token is the $920 area. A break above this mark would confirm a trend reversal and could put BNB on track to recover some of the territory it has lost since the October crash.

The price seems to have some sort of gravitational pull to the 200-day exponential moving average (EMA). This further favors an ongoing phase of accumulation/consolidation as the market prepares to make its next move.

Back in September, what propelled BNB to a new all-time high was robust ecosystem growth in the form of higher DEX volumes, new meme coins being launched that rapidly gained traction, and more.

If network activity picks up and Pancake Swap manages to bring traders back, that could reignite the market’s interest in BNB. The Relative Strength Index (RSI) favors a bullish for now after climbing above the mid-line and past the 14-day moving average.

However, the beginning of a bull market has not yet been confirmed as the price has not managed to reverse its downtrend yet. Let’s wait until (or if) BNB breaks above $920, and then we’ll talk.