Bitcoin is generating an almost general correction in the ecosystem, however, Binance Coin seems to have taken advantage of this moment to gain prominence by jumping strongly to the upside.
At the time of writing BNB is trading at $ 461 accumulating a gain of 3.76% in today’s session.
What caused the rise of Binance Coin?
The news that is driving the price is one in which the launch of a new fund is announced, for the development of the Binance Smart Chain and the blockchain industry in general.
This is a $ 1 billion fund, making it the largest in the history of cryptocurrencies.
For the launch of the BSC, $ 100 million was allocated to finance projects and accelerate the growth of this network. Now with over 900 DApps running on this blockchain, it is one of the largest crypto ecosystems.
The new fund will be segmented into 4 groups: $ 100 million for talent development, $ 100 million for liquidity incentives, $ 300 million for construction and incubation of projects, and $ 500 million for general investment in any type of decentralized protocol.
It’s time to accelerate # BinanceSmartChain’s journey towards scaling and mass adoption 🚀
We’re announcing the biggest growth fund in the history of crypto – the $ 1 billion fund to push the adoption of not only BSC but the whole blockchain industry.
– Binance Smart Chain (@BinanceChain) October 12, 2021
Let us remember that BNB is the main vehicle within the BSC, as it is the currency with which gas rates are paid. Therefore, the growth of both this network and the Binance exchange will continue to drag the price of Binance Coin up.
BNB technical analysis
On the BNB vs USDT daily chart we notice a clear short-term uptrend, which resumed strongly yesterday.
Today the price managed to break through the most relevant immediate resistance, located at $ 444. Now a short-term momentum is building, and while it could spread further, a small correction is likely to begin.
Either way, it is not a good idea to expect a drop at this time. Binance Coin’s current momentum is on the upside. The ground is now clear to $ 509.7, and that goal may be reached before a relevant pullback begins.
Technical analysis of Binance Coin, after the sharp rise in its price. Source: TradingView.
From this time frame we see a more encouraging outlook, although the bulls still do not confirm that they have completely regained control.
The price of BNB has been locked in a big pennant for the last 5 months. This chart figure generally represents the break of a trend before its continuation.
This week the price is challenging the diagonal resistance that delimits this figure. Should it break through, which is most likely, it would be a good sign that momentum in search of new all-time highs is beginning.
The horizontal resistance that must be crossed is at $ 509.7.
To think about selling, the support at $ 340 must be lost.
All our publications are informative in nature, so in no case should they be followed as investment advice.
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