Binance Coin [BNB] may disappoint traders in Q4 based on these reasons

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Binance Coin’s [BNB] antics, since the start of Sep­tem­ber, may have left investors in dis­ap­point­ment. How­ev­er, a report revealed that the exchange cryp­tocur­ren­cy man­aged to put up some good per­for­mance in some oth­er areas.

Accord­ing to BNBburn, the num­ber of tokens burned in the third quar­ter (Q3) sur­passed the entire record of the sec­ond quar­ter. At press time, BNB tokens burned in Q3 was 2,040,503.56 BNB, com­pared to 1,976,739.87 BNB in Q2. 

Inter­est­ing­ly, all these hap­pened despite a low­er aver­age trad­ing price reg­is­tered by the for­mer. As expect­ed, this led to a sig­nif­i­cant dif­fer­ence in the worth of the BNB burned. The sec­ond quar­ter val­ue amount­ed to $626,356,129.623  while Q3’s worth was $562,592,435.15. 

In dire need of a helping hand

Despite the increase in burned tokens, it may seem that BNB could need some help. Details from DeFi Lla­ma showed that the Total Val­ue Locked (TVL) on the Binance Smart Chain (BSC) was worth less than it was on 27 September.

Accord­ing to DeFi Lla­ma, BNB’s TVL was $5.25 bil­lion at press time, rep­re­sent­ing a 1.87% decline from the pre­vi­ous day. 

Source: DeFi Llama

Addi­tion­al­ly, it was not only the BNB price that expe­ri­enced a decline. A look at its one-day cir­cu­la­tion also showed that it was nowhere near impres­sive. Fur­ther­more, San­ti­ment data showed that the uptick on 20 Sep­tem­ber to 358,000 had reduced to 125,000. 

For­tu­nate­ly, it seemed that traders were most active in the NFT sec­tor of the BNB chain. The on-chain data plat­forms showed that BNB NFT trades were $1.52 mil­lion at the time of this writing.

Source: San­ti­ment

How about the charts?

Some days ago, it was observed that the burn­ing effect could not lead BNB to $300. As of then, BNB was trad­ing a lit­tle above the cur­rent price. So, has the momen­tum changed since then?

The Awe­some Oscil­la­tor (AO) showed that BNB’s momen­tum was cur­rent­ly bear­ish with its val­ue at ‑4.3. Also, the AO sta­tus also showed that there was a bear­ish twin peak, indi­cat­ing that a bull­ish momen­tum was unlike­ly  in the short term. 

Source: Trad­ingView

It was a sim­i­lar result with the Rel­a­tive Strength Index (RSI). Based on the four-hour chart, the RSI had suc­cumbed to the over­bought pres­sure it ear­li­er experienced. 

With BNB fail­ing to hold on sup­port and resis­tance repeat­ed­ly, the expec­ta­tions of a price rise in the fourth quar­ter may well be at an extreme­ly low point. Still, assum­ing that there would be less prof­its could sound too hasty as Bit­coin [BTC] can­not be writ­ten off in recov­er­ing. In most cas­es, BNB fol­lows the same trend. 

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