In a sluggish market, Binance Coin is able to achieve a fairly interesting growth rate. Indeed, the price of BNB soars after Binance decided to take out the checkbook to finance the blockchain ecosystem.
BNB price was in a sort of phase of uncertainty with Binance being in the crosshairs of stock authorities around the world. The crypto had even lost its third place at the expense of Cardano (ADA).
Did he finally revive? Either way, traders are hoping BNB can once again break through the $ 500 resistance as soon as possible in order to attack the May 10 ATH ($ 686.31).
1 billion to promote blockchain adoption
Binance announced the disbursement of a billion dollar fund to promote the popularization of blockchain technology as well as the extension of Binance Smart Chain in the financial sector. In a statement, Smart Chain Accelerator Fund Investment Director Gwendolyn Regina reported:
With the billion dollar initiative, our goal will be broadened to build cross-chain and multi-chain infrastructures integrated with different types of blockchains.
The allocation of the fund will be divided into four main areas:
- Talent development => $ 100 million
- Liquidity incentive program => $ 100 million
- Builder Program => $ 300 million
- Investment and incubation program => $ 500 million
Impact on the BNB price
The announcement had a bullish effect on the price of BNB. Within a day, its price went from $ 403 to $ 444. It is showing encouraging signs of a rise as its price exceeds the 20 and 50 day moving averages estimated at $ 402.8 and $ 407.3 respectively. The RSI is recovering. He gained nearly 11 points from 50 to 61.87 in three days.
Now the next challenge is crossing the $ 500 mark. Referring to the technical pattern, Cup and Handle highlighted in the chart, the price of BNB should reach $ 549 in the coming sessions.
According to the definition of the technical analysis platform, Stockcharts, Le Cup and Handle:
A chartist diagram developed by William O’Neil which marks a period of consolidation followed by a breakout. There are two main parts in this chart figure: the Cup and the Handle.
The cup forms after stepping and looks like a bowl or rounded bottom. When the cut is complete, a trading range grows on the right side and the grip is formed. A subsequent breakout of the trading range signals the continuation of the previous progression
If the altseason were to occur, that would have been one more argument for a bulllish BNB for the end of the fourth quarter.