BNB Nears Breakout After $50M Buy, Network Upgrade
Binance Coin (BNB) may be on the verge of a significant price rally after a Nasdaq-listed firm, Nano Labs, disclosed a $50 million investment in the token as part of its newly launched treasury strategy.
The acquisition follows a week after the firm revealed its intentions to spend one billion dollars on acquiring BNB. By Thursday, the price of BNB is at the level of $658, dropping by a slight 0.8% in the last 24 hours.
The same period trading volume is $1.49 billion. During the past month, institutional treasury deposits in BNB have already reached $600 million, and crypto hedge fund executives have contributed its additional part of $100 million.
BNB Holding Strong Above Key Support
According to technical signals, BNB is trading at a solid support point at 600, which it has managed to sustain since the beginning of May. The revived interest of institutions and the creation of a BNB treasury have brought a bullish mood to the token.
According to a market intelligence platform Santiment, the social dominance of BNB growth has increased to the highest in two months, indicating a potential growth in chatter among traders.
Beyond the treasury news, the underlying network of Binance Coin also got a major boost this week with the release of the Maxwell upgrade. With infrastructure investment and higher institutional accumulation, there has been speculation of an eventual breakout.
BNB Funding Rates Turn Bearishly Negative
On a technical front, BNB is in a consolidation phase in a symmetrical triangle. Analysts believe that a move beyond the upper resistance trend line of the triangle would cause a rally of 20% or more, the next price target being at $794.
Further lending support to the bullish scenario is a rising Money Flow Index (MFI), which represents a build up in the buying pressure, and narrowing Bollinger Bands, indicative of a possible volatility action to bring the price to $694.
At the same time, the BNB funding rates have become negative during the last month, which means that traders are mainly shorting the token. Although this bearish sentiment can sound worrying, it also preconditions the short squeeze in case the price goes up. In that case, short sellers would be pressured to cover, causing upward impetus.
Binance Coin may be about to break out with treasury releases valued at $600 million, a significant network upgrade planned, and growing bullish technical indicators all possibly bringing a 20% boost soon.
