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Binance Coin’s Price Drops; On-Chain Data Shows Resilience
Binance Coin (BNB) faced notable downside pressure on October 21, shedding nearly 4% in a single session as Bitcoin’s wild price swings sent shockwaves across the broader crypto market. Still, on-chain data suggests that despite short-term technical weakness, BNB’s ecosystem fundamentals remain robust.
BNB Falls Below Key Support as Market Volatility Intensifies
On October 21, BNB’s price dropped 3.91%, falling below the $1,071 daily support level, which had previously marked the close of the Friday session. This decline closely followed Bitcoin’s erratic movement — a rally to $114,000, followed by a swift drop to $107,800 in just a few hours. Over the next 18 hours, BTC experienced a 6% bounce and then a 5.4% correction, amplifying volatility across the altcoin market.
This turbulence drove some altcoins to print new local lows, particularly on lower timeframe charts — a technical signal of short-term weakness. BNB was among those affected, slipping below its immediate support level and sparking concern among bullish traders.
While higher timeframe charts for BNB still hint at a possible upward structure, these scenarios rely heavily on buyers defending the critical $1,000 support zone.
On-Balance Volume Breaks Down — A Bearish Signal?
Volume trends have been noteworthy over the past two weeks. During BNB’s rally toward $1,300, buying pressure dominated, but the retreat back to $1,000 also came with heightened selling activity.
Most notably, the On-Balance Volume (OBV) has now fallen below its 25 September low, a time when BNB traded near $950. This breakdown in volume momentum could pose short-term challenges for bulls, as it suggests weakening demand even at lower prices.
BNB Chain Fundamentals Tell a Different Story
Despite the price weakness, the underlying strength of the BNB Chain ecosystem remains intact. On-chain data shows that the number of token holders has steadily increased in recent months, reflecting continued trust in the network.
According to Token Terminal, BNB Chain revenue over the past 30 days was significantly higher than in previous months, going back to March — a sign of elevated on-chain activity and potential investor interest in the protocol’s long-term growth.
Strategic Partnership Could Bolster BNB’s Use Case
In a move that may strengthen BNB’s utility, BNB Chain announced a new partnership with Better Payment Network (BPN) to enhance cross-border enterprise payments. The collaboration aims to streamline FX settlements, facilitate on-chain liquidity, and enable faster global transactions.
Commenting on the partnership, Rica Fu, Founder of BPN, stated:
“BNB Chain’s high-performance infrastructure and vast liquidity ecosystem make it the ideal base layer for programmable payments. Together, we’re transforming FX conversion from a closed, delayed financial process into an open, real-time network that connects every corner of the global economy.”
