On Oct 12, Binance Coin (BNB) jumped 23% before profits pared.
The Binance token was reacting to news of the Binance launching a $1 billion blockchain fund.
NEW DELHI (CoinChapter.com) — Binance coin (BNB), Binance’s native token, registered a jump of 23.6% on Oct 12 between the day’s low($372) to high($460) levels. The jump took BNB’s current week gains to 14.8%.
Binance, the largest cryptocurrency exchange by market volume, launched a $1 billion to support the growth of its Binance Smart Chain blockchain. The fund aims to accelerate the adoption of blockchain technology and digital assets. According to Binance’s announcement, the fund is the biggest ‘in the history of crypto.’
Since the Binance Smart Chain (BSC) runs on Binance Coin, the token immediately responded to the news, shaking itself out of its descending trend. Currently, BNB is trying to regain its pre-Sept seven price levels.
Binance Price Movement
BNB began the week trying to recuperate last week’s losses, as it jumped 2.22% intraday on Monday. After Binance’s fund launch announcement on Oct 12, BNB saw a flurry of buying activity that launched its prices to $460.8. However, BNB pulled back and ended the day at $444.4, a gain of 7.54% on the day.
The Binance token continued to be traders’ favorite as the buying action took BNB to a high of $483 on Wednesday. Furthermore, BNB’s Tuesday gains took the Binance token’s prices its 50-day and 200-day Moving Average trendlines, providing a bullish forecast across all time horizons.
BNB would likely face strong resistance at $491, near the $500 price level. If bulls breach and consolidate above the resistance, it would help continue BNB’s current bull run. Once above $500, BNB investors would likely target resistance at $515, recovering losses from the Sept 7 crash.
A sustained buying sentiment could see BNB test resistance at $533 before any pullbacks occur.
On the other hand, Binance Coin has immediate support near its 50-day MA line at $424. Therefore, traders would arrest any downtrend above this level to ensure BNB stays bullish in the short-term range.
However, market-wide selling pressure due to profit-taking may push prices below, resulting in BNB testing support provided by its 200-day MA line at $406. In the unlikely event of sustained selling action, BNB could fall below $400 before reaching support at $388.
BNB’s MACD is echoing the bullish sentiments forecasted by the Binance token’s MA trendlines. Bars on the MACD histogram grew in magnitude, indicating the MACD line (difference of 12-day and 26-day EMA) moves further away from its signal line (9-day EMA of MACD).
Positive MACD histogram bars indicate bullish momentum for BNB is strong. Meanwhile, the relative strength index is at 61.81, a neutral value. RSI measures the magnitude of price change to indicate if an asset is overbought or oversold.
Binance’s Blockchain Fund
According to Binance’s announcement, its fund is blockchain agnostic and will focus on raising the profile of the entire crypto industry. About half of the funds are set aside for investment in gaming, virtual reality, and blockchain-based financial services.
The lion’s share of $500 million would help bring disruption to financial infrastructure. In addition, collaboration from industry-leading organizations would help ‘bridge the gap between crypto-blockchain and the current technical-financial sectors.‘
From the remaining amount, $300 million would help boost Binance’s Most Valuable Builder Accelerator Program. The program provides independent BSC projects with funding, expert support, and access to the BSC ecosystem. Earlier, the MVB program had a funding of $100 million.
Liquidity incentives and Talent Development would receive $100 million each. The Liquidity Incentives initiative would help encourage participation from traditional financial markets and crypto. Additionally, Incentives could include liquidity rewards based on TVL, innovation, active users, or trading volumes.
With the $1 billion initiative, our focus will be widened to building cross-chain and multi-chain infrastructures integrated with different types of blockchains.
Gwendolyn Regina, investment director of the BSC Accelerator Fund, said
Talent development would focus on mentoring developers, guiding new crypto investors, academic scholarships to Universities, and supporting R&D on blockchain innovations around cryptography, multi-party computing (MPC), high-performance consensus protocols, etc.
At the time of writing, BNB was trading at $455, up 2.55% on the day.
A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.