BNB Price Movement Remains Neutral Despite Spot Market Buying

Binance Coin’s [BNB] price movement over the past 24 hours has remained neutral, with a modest gain of 0.10%.

Binance Coin’s [BNB] price movement over the past 24 hours has remained neutral, showing a modest gain of 0.10%.

While that may sound calm, a look at market behavior and on-chain signals tells a more nuanced tale- one where spot and futures traders are on different sides of the coin.

Spot traders are bullish. They have been busy accumulating more BNB, especially over the last day, with $8.34 million worth of BNB transferring out of exchanges.

This pushes the weekly net outflow to $31.28 million, which is no small feat.

Source: CoinGlass

This purchase is worth noting, as it indicates traders are acquiring BNB from exchanges and transferring it to private wallets.

This trend is usually a positive indicator for an asset’s long-term outlook, which is crucial for maintaining its price stability in the long run.

However, futures traders are unconvinced, and the story in the derivatives market is unfolding with a more bearish hue.

Especially since AMBCrypto found that Binance’s largest traders by position size are the most bearish.

This sentiment is reflected in the Taker Buy/Sell Ratio, reported by CoinGlass at 0.955, which measures whether buying volume (above 1) or selling volume (below 1) is dominant.

The broader market appears even more bearish, with the press time ratio at 0.9139, suggesting weaker buying pressure overall.

Source: CoinGlass

Open Interest (OI) has also declined, continuously trending lower.

BNB’s OI fell from $855.2 million earlier in May to $789.9 million. That drop in unsettled contracts shows reduced conviction and momentum.

Source: CoinGlass

Surprisingly, short traders recorded higher losses in the past 24 hours, incurring $102,560 in losses, compared to $2,140 lost by long traders.

Greater losses among short traders suggest that the market has tilted against them, pivoting the advantage to the longs.

BNB development activity drops

Now, turning to activity on the BNB Smart Chain, the picture becomes more cautious. After a solid build-up earlier this month, daily smart contract deployment has sharply pulled back.

According to BscScan, deployments dropped 34.77% in 24 hours to 54,369.

Verified contracts also saw a decrease of 22.69%, reaching 259. Naturally, fewer contracts equal lower network usage and less on-chain demand for BNB.

Source: BSCscan

The continued slowdown in development activity could be a defining factor in whether BNB manages to rally or faces further decline from here.

If negative sentiment around development persists, it could propel the token into a continued price decline. Conversely, renewed development and positive sentiment could support a potential rally for the token.