BNB token could be close to recording a rally after a firm listed on Nasdaq purchased $50 million worth of BNB tokens. Binance Coin price is trading at $658 today, July 4, after dropping by 0.8% in 24 hours, while $1.49 billion has been traded within the same time. In total, $600M have been committed towards BNB treasuries in last 30 days.
BNB Bulls Defend $600 After $50M Treasury Purchase
BNB price has created a strong support at $600, considering the fact that it has been trading above this level since early May. The sudden interest by institutions towards the token following the recent launch of a BNB treasury increases the odds of the price holding this level before the next bullish leg, which will likely lead to an all-time high.
As CoinGape reported, Nano Labs has bought $50M BNB tokens as part of its plans to have a treasury that includes this altcoin. This purchase comes around one week after the company revealed that it would allocate $1 billion towards the efforts of accumulating the coin. In another related news, crypto hedge fund executives have also committed a $100 million for the BNB treasury, which takes total tally to $600 million in last 30 days.
The purchase has increased the interest around the BNB token after the coin’s social dominance rose to the highest level in two months, per Santiment data, indicating that there are many traders talking about BNB. If this interest remains high, the Binance Coin price is likely to rally.
Besides the treasury, the Maxwell upgrade on the network was launched earlier this week, and this is also drawing a lot of market interest towards the Binance Coin.
Binance Coin Price Eyes 20% Rally Amid Triangle Squeeze
Binance Coin price could be close to rallying because of a symmetrical triangle pattern that has appeared, and as the price squeezes within this triangle, it may break out in either direction. However, a breakout from the upper resistance line is a more likely scenario because the price is testing the resistance level there. If it can break out of this, the BNB price may rally by 20% to the next target of $794.
The bullish Binance Coin price prediction in this triangle pattern is also likely to play out because of the MFI indicator, which is rising to show that the buying pressure has been growing. At the same time, the Bollinger bands are squeezing, and this places the most immediate target that the price will reach at $694.
If the price can rise to the upper band, it may make buyers come back into the market again, and this might be the event that allows the BNB price to rally by 20% from the triangle’s resistance line.
Will a Short Squeeze Spark Recovery?
There has been a significant drop in the BNB funding rate, considering that the token has recorded a negative funding rate for one month. When this happens, it shows that a majority of traders are opening short positions as they bet that the price will drop.
While this may show that the sentiment is bearish, it also creates an opportunity for it to recover if there is a slight increase in the Binance Coin price, and these short sellers buy back BNB to close their positions.
Therefore, considering the ongoing developments around the Binance Coin, such as the $50 million BNB treasury and network upgrade, it is possible that the price could break out from the symmetrical triangle with a 20% rally. If this happens, it is possible that a massive liquidation event will occur, which may support more gains.
Frequently Asked Questions (FAQs)
Binance coin price could gain after the launch of a $50M BNB treasury that will increase demand if accumulation continues.
The symmetrical triangle formation suggests that the BNB price might be on the verge of a 20% rally that will push it to an ATH.
BNB short traders might be liquidated if there is a sudden spike in price, and this may spark buy-side pressure that will drive gains.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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