- BNB showed relative strength compared to the broader market, holding key levels while others faced deeper pullbacks.
- USDC continues to gain ground on Binance amid MiCA compliance.
Binance Coin [BNB] has been performing relatively better than the general market. The strength has shown in the manner of sustaining important price levels amid recent market drops.
The latest buying spree carried prices to key resistance levels. The levels pointed towards potential uptrends in the near term but also cautioned against approaching resistance levels.
Price action and prediction
Binance Coin rebounded off a support level at around $560 to potentially confirm the double bottom if $650 is breached.
The high trading volume that accompanied BNB was perhaps by traders trying to profit from short-term moves.
Price action is centered between the $690 and $730 area. The $730 price point was tried numerous times in the past quarter but not convincingly breached, an indicator that there was growing sell-side pressure.
If buying pressure persists, BNB can attempt to breach the resistance level of $730.
However, with the large number of short liquidations already in the books, it can also act as resistance to any further uptrend. Breaching the resistance could pave the way toward a rally to a high of $794.68.
Source: TradingView
On the other hand, if BNB fails to sustain its present momentum and is assaulted with an aggressive sell-off at crucial resistance, there is a danger of falling back towards lower levels.
The nearest crucial support below present levels is at $550.
A Breakdown beneath this level can invite more sell-offs, which can test the $500 zone, which was previously a psychological support level.
In brief, while BNB can still trade higher, the proximity to the key resistance and the potential for short liquidations call for caution.
A consolidation above $730 for a bullish confirmation, or a breakdown below $550 for a bearish continuation.
Growing stablecoins on Binance
The USDC market share on Binance has increased by 1,621% in the last year from 0.48% to 8.26%. The hyperbolic growth is mainly owing to the planned delisting of USDT for EU clients to make way for MiCA compliance.
The shift not only increases USDC visibility, but also possibly impacts the stability of BNB.
Source: CryptoQuant
As regulatory development powers stablecoin movements, it could very well validate BNB’s double bottom pattern.
This would be a solid support level and a possible reversal for BNB to the upside as stablecoin action continues to amplify on the platform.
However, with the market at these key levels, keeping a level head for upsides and downsides potentials will be key for traders active in BNB trading action.
