Binance Coin (BNB) has defied the overall market downturn today, showcasing a promising performance with a surge of 6% on the daily chart.
This upswing comes at a crucial time for BNB, as it marks the cryptocurrency’s first major price uptick since it was designated a security by the United States Securities and Exchange Commission (SEC).
BNB’s resilience is catching the attention of investors, leading the altcoin market’s upward momentum amidst a fast-sliding bear zone.
Over the past week, the coin experienced a substantial decline from its lofty position above $280. The cryptocurrency encountered steady downward pressure, breaching the crucial support zone at $250.
This decline even pushed the price to test the support zone’s limits, resulting in a low near $222.07. However, the coin has shown resilience by gradually climbing higher in recent days.
Following its climb, it managed to break above the resistance at $230. The bulls demonstrated strength, propelling the price above $251 earlier today.
Unfortunately, BNB faced challenges in maintaining its gains and slipped below the support level once again. According to the latest data from CoinMarketCap, BNB is currently trading at $241.07. However, the weekly chart still exhibits a bearish trend, reflecting a loss of over 6%.
Despite the ongoing challenges, BNB’s ability to carve out gains amidst a bearish market demonstrates the underlying strength and potential of the Binance exchange ecosystem’s native digital currency.
BNB Price Driving Factor
Binance Coin’s (BNB) recent price movement can be attributed to several key factors. One significant development is the ongoing negotiations between Binance.US and the United States SEC.
Both parties are working with a magistrate judge to reach an arrangement to safeguard customer funds and prevent a complete exchange shutdown.
U.S. District Judge Amy Berman Jackson emphasized the potential consequences of a complete shutdown and deferred a final decision on the SEC’s motion for a temporary restraining order until the negotiations progress. An update on the discussions is expected by the end of June 15.
Another contributing factor is the notable increase in BNB Chain volume on decentralized exchanges (DEX) over the past two months.
According to data compiled by The Block Research, BNB Chain exchange volume rose from $11.79 billion in April to $19.52 billion in May, indicating a significant 65.3% increase worth $7.73 billion.
Kevin Peng, a research analyst at The Block Research, attributes this surge to Pancakeswap’s upgrade to V3, which aligns its automated market maker (AMM) model with Uniswap V3, providing greater flexibility to liquidity providers.
The rise in DEX volumes coincided with a period in May where DEX volumes as a percentage of centralized exchange (CEX) volume reached an all-time high.
Additionally, recent sell-offs by some BNB holders, including a crypto whale who liquidated $2.3 million worth of BNB on June 12, may have impacted the token’s price.
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