- Binance Coin price rallied by more than 21% in the last ten days reaching $319.
- A breach of $332 by BNB could initiate some sell-off as investors would gun for profits for the first time in six months.
- Layer-2 solution Boba Network is set to be integrated into the BNB chain to scale dApps.
The Binance Smart Chain, also known as the BNB chain, is the second biggest DeFi blockchain in the world. However so, the chain did not have any layer-2 (L2) solutions, which Ethereum is primarily home to.
This changed on November 1 as Boba Network integrated with the BNB chain. This could potentially push the BNB price up and help it establish a new local top.
Boba comes to Binance Smart Chain
In a blog post on Tuesday, the multichain L2 network announced that Boba Network and BNB chain entered into a partnership. This will allow the L2 and L1 networks to commence their integration with a couple of DeFi protocols, including SushiSwap, set to launch on the BOBA BNB L2.
Being the first L2 on Binance Smart Chain, Boba will allow for the protocols on the chain to experience a faster and cheaper blockchain. The BNB chain is currently home to over 490 DeFi protocols, which hold a combined value of almost $6 billion.
Let's welcome BobaBNB!
— Boba Network x #BNBChain (@bobanetwork) November 1, 2022
We're excited to announce the launch of scaling solution for @BNBCHAIN!
BobaBNB caters to the massive user base and dev community enabling smarter contracts and lightning fast transactions ️
1/X pic.twitter.com/8IwGCbooJr
A faster and cheaper option for these protocols would boost the user numbers as well as attract more developers. This would make the BNB chain a solid competitor to Ethereum, which is currently the biggest DeFi chain with a total value locked on it exceeding $31 billion.
Moreover, this could also positively impact BNB’s price, further pushing its value.
Binance Coin price on the rise
BNB’s price had maintained a bullish stance throughout June until the breakdown in September following a rejection from the critical resistance of $332. This price point has remained unbreached for six months now. But with the recent 21.08% rise, BNB has inched closer to it.
A rise above $332 could see investors liquidating their holdings since the multi-month breakout would establish the new local top.
However, the $335 to $357 range is acting as resistance, which would make further rise difficult for BNB. If the altcoin was to fail the breach and declines, it would test $299 as the next support level. And a further drawdown would result in BNB retesting $259, a critical support level.
BNB/USD 1-day chart
This could be an opportunity for scalpers to scrape profits, but investors would be better off holding on to their BNB until the resistance block is cleared.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.