BNB price rises 5% as Binance gets full regulatory license in Dubai

Binance Coin (BNB) price showed strength on Thursday, climbing 5% in parity with Bitcoin (BTC) price. The altcoin became an outlier alongside Solana (SOL) and Avalanche (AVAX) with the tokens showing strength, while the rest of the altcoin community struggled to catch up.

Also Read: If Bitcoin restarts bull run, these altcoins are likely to explode

BNB jumps as Binance thrives in Dubai

BNB price enjoyed tailwinds from a bullish development in Binance Exchange’s commitment to expansion in the United Arab Emirates (UAE). Based on recent reports, the trading platform has secured regulatory license to operate in Dubai.

The license has been secured through the Dubai subsidiary of global cryptocurrency exchange Binance, christened Binance FZE. Based on an official announcement from Binance, they have received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).

Although very significant, it is not the first of Binance Exchange’s wins in the region as it comes after July 2023’s issuance of the Minimum Viable Product (MVP) license. For the layperson, this is an upscale (MVP to VASP),  providing the go-ahead to extend product reach to the retail market. As such, it adds to the strides the platform has already made to operate in the region.

Citing Binance FZE General Manager Alex Chehade on the development:

This is a major milestone that validates our commitment to providing secure, compliant, and top-tier services to our users globally. It underlines Dubai’s position as a forward-thinking city, acknowledging and embracing the financial potential that blockchain technology brings.

The report comes on the last day of Token 2049 in Dubai, a two-day global conference series for the crypto and blockchain industry, where decision-makers connect, exchange ideas and shape the future. Notably, Binance CEO Richard Teng attended, featuring among industry players to discuss global crypto regulation and explore their individual and shared vision for the future as an industry.

Nevertheless, it is imperative to note that while the news is a bullish fundamental for BNB price, the continuation of the trend hinges on whether Bitcoin price surges further. Besides this correlation, another factor that have provide tailwinds for Binance Coin price include  the April 17 Tycho hard fork

This is a major upgrade where the BNB Smart Chain (BSC) ecosystem upgrade took place on the testnet. Setting the pace for the mainnet implementation of the Tycho upgrade will take place around mid-June.

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BNB price outlook as Binance exchange takes Dubai

BNB price is trading within the lower section of the market range, confronting immediate resistance due to the 50-day Simple Moving Average (SMA) at $544.20. The Relative Strength Index (RSI) is edged north amid budding bullish momentum.

If Bitcoin price rises further, BNB price will follow suit, potentially flipping resistance due to the 50% Fibonacci placeholder of $566.20 into support. Such a move would draw in more bulls, with the ensuing buyer momentum catapulting Binance Coin price to the $600.80.

A decisive candlestick close above this level would confirm the continuation of the intermediate trend, setting the trajectory for BNB price to reclaim the $645.20 range high, a climb of nearly 20% above current levels.

BNB/USDT 1-day chart

On the flipside, with the RSI still sub-50, and the Awesome Oscillator (AO) in negative territory, the bears still have control and BNB price could pull back. If early profit-taking sets in, Binance Coin could drop below $537.10, or in a dire case, provide another buying opportunity around the $500.00 psychological level.