BNB has updated its all-time high amid growing interest in risk assets and a weakening dollar. Capital is flowing back into the market, and sentiment has become noticeably more positive.
But on-chain metrics show a different picture. User activity on the BNB Chain has been declining since the end of September, which may indicate weakening demand despite the price increase.
BNB’s growth may be unstable
Over the past week, BNB has risen by 25%, becoming the leader among the top 5 cryptocurrencies by market capitalization. This rally pushed the token to a new all-time high — today it reached $1,263.
But not everything is smooth. On-chain data shows that the price increase is happening against the backdrop of declining user activity on the BNB Chain.
According to Glassnode, since September 24, the number of new addresses on the network has decreased by 57%. This indicates a significant slowdown in growth rates.
Number of new addresses on the BNB network. Source: Glassnode
Such a decline may indicate a drop in user interest. In a healthy market growth environment, the number of new addresses usually increases along with the price, as new participants join the network.
In the case of BNB, the opposite is observed: the price is rising, but activity is falling. This divergence indicates that the current surge is not supported by real demand. In the short term, this increases the risk of a pullback.
The BNB rally is losing momentum
Additional signs of weakening are also coming from the technical side. The RSI indicator for BNB is now at 75.79 — this is the overbought zone, which may indicate an imminent correction.
RSI index for BNB. Source: TradingView
RSI tracks the overheating of an asset. Values above 70 signal a risk of a pullback, below 30 — a possible upward reversal. The current value is already significantly above the threshold.
Given the weak on-chain activity and lack of new users, the RSI indicator only increases the likelihood of a price decline in the near future.
BNB may test the $1,100 level
If network activity does not recover and confirm the current price growth, BNB risks correcting to the support zone at $1,100. If it breaks through, the next downside target is $971.80.
BNB price analysis. Source: TradingView
Nevertheless, if a macro impulse strengthens in the market or real new demand comes to the project, the token may update its high in the next trading sessions.
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