Key Takeaways:
- BNB rises 2% to over $680 and this is after completing a bull flag advance.
- Technical confirmation and break after the pattern to establish the target in bullish future at $750.
- Maxwell hard fork to decrease the amount of time each block takes to 0.75 seconds to increase scalability.
- There is so much conviction in the market with Open Interest soaring to 800M $ and short liquidations at 423K $.
- The next upside will be indicated by the golden cross between the 50-day and the 200-day EMA.
Bull Flag Break out Launches BNB to the Sky
Binance Coin (BNB) has finally emerged out of its months-long stagnation and is now up 2 percent above the overcoming $680 resistance mark. The action rounds off a standard bull flag trade, and many analysts are expecting a 16 percent move up to $750 should the price momentum move forward.
The upward event is a continuation of a 15 percent explosion earlier in the month coupled with a retest of support at close to $637 serving as the precursor to today.
Technicals are in Favour of the Bull Case
This bullish sentiment is confirmed by a combination of bullish signals:
- Golden crossover: Crossing of the 50 day EMA above 200 day EMA.
- Second crossover of EMA: 100-day EMA has also been recaptured this week.
- RSI strength: The RSI dealing with the day-to-day bounced prior to breaking into the midpoint, an indicator of new power but not taken overbought.
Using these technical alignments, BNB will be slightly in a position to take over the psychological mark of $700, even though the mark might pose resistance on short term. There is a chance that it can still pull back at $637 should volatility increase in the market.
Maxwell Hard fork: BSC is Upgraded Powerfully
As a fuel on the flame of the rally, Binance Smart Chain (BSC) is to experience a Maxwell hard fork that will introduce three significant protocol upgrades:
- BEP-524: Decreases the block time to 0.75 seconds, as opposed to ~3 seconds.
- BEP-563: Keeps validator network messaging secure to communication.
- BEP-564: Refines net-gain fetching to enhance the network performance.
The goal behind these changes is to ensure that BSC is quicker, more scalable and more appealing to developers as well as institutions, and therefore there is a potential that eventually more people may be willing to consume what this chain is offering which is the BNB, which is the native token of the chain.
The momentum in the market is growing
This enthusiasm is reflected in market indicator. Open Interest (OI) on BNB futures has taken off like a rocket and hit the level of $800 million, meanwhile $423,000 of short positions have been liquidated, which is indicative of the bulls running the game.
With the BNB making waves to ascend in the investor radars in the recent times due to the breakout and subsequent upgrades, an eyeful of the traders and enthusiasts is on the next major shift.