Can the Binance Coin (BNB) price rise to $560 in the near term?
As AZCoin News reported, the Binance cryptocurrency exchange announced a $1 billion accelerator fund to expand the capabilities of the Binance Smart Chain (BSC) ecosystem. Following that news, Binance Coin (BNB) rallied 10% and stayed above $450 for more than a day. At press time, BNB is changing hands at $478.
BNB/USD 4-hour chart | Source: TradingView
Binance Coin (BNB) price gets a boost as Binance launches a $1 billion blockchain fund
The latest BNB price rally appeared after Binance, via its blockchain project Binance Smart Chain (BSC), launched a $1 billion fund to accelerate adoption across the entire crypto industry. This marks $300 million for projects building decentralized applications atop BSC.
An ongoing price boom with Binance Coin (BNB) draws a classic Cup and Handle bullish chart pattern with a bullish target of $560.
At the moment, it looks like BNB has gone through a price trajectory that looks like this pattern. Furthermore, the cryptocurrency’s latest rally, accompanied by an increase in trading volume, took its prices above the Handle range—a breakout—that raised the possibilities of bullish continuation ahead.
BNB/USD 4H price chart featuring Cup and Handle setup | Source: TradingView
If the BNB price rally sustains, it will aim for a breakout near $560. Conversely, if the price drops below the resistance at $437, it risks invalidating the entire bullish setup price.
According to Santiment, there is an increase in BNB accumulation on wallets that already hold millions of dollars worth of tokens. The whales have purchased around 412,000 BNB in the past two weeks, thus adding 8.7% more tokens to their existing holdings.
Binance Coin whale holders data | Source: Santiment
BNB’s network activity also suggests a possible breakout is imminent. Online and social volumes, as well as daily active addresses, have been steadily increasing since the beginning of the month. These fundamental indicators can help determine whether the digital asset is prepared for further growth. When these three indicators rise simultaneously, they form a bullish signal for future upward price action.
BNB accumulation among wealthy investors has surged despite warning signs from regulators in several countries.
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