Binance Coin (BNB) experienced a slight uptick after Binance confirmed securing a significant $2 billion investment from Abu Dhabi’s MGX group. Currently, BNB is trading at $559, reflecting a modest 1% increase over the last 24 hours. Despite the market cap rising by 1%, trading volume has seen a significant dip, dropping by 31.58% on the day.
This investment from MGX represents the largest single funding ever made into a cryptocurrency firm. Under the agreement, MGX is set to acquire a minority stake in Binance, further strengthening the exchange’s position as one of the dominant players in the crypto industry. With such a massive infusion of capital, the question arises: can this development push BNB to the $750 mark, particularly if the broader market turns bullish?
BNB reached its all-time high of $750 in early December but has since lost 29% of its value. Examining the daily chart, BNB recently bounced off a key support level at $511, which has been tested multiple times. This bounce was followed by a bullish candle, but today’s chart shows a wick rejection to the downside. Nevertheless, the Relative Strength Index (RSI) indicates that BNB is in an oversold condition, currently at 38, suggesting there is ample room for a bullish rebound.
Additionally, the formation of a bullish flag pattern on the daily chart, which has been in play since February, hints that a breakout could be imminent. If BNB successfully breaks out of this pattern, reaching the $750 target could become a reality. However, the price must first overcome a significant resistance level at $721 before moving closer to this goal or potentially setting new highs.
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