Binance’s Ambitious Expansion Plans Fail to Revitalize BNB, Leaving Bullish Setup as the Only Hope
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NOIDA (CoinChapter.com)— Binance, a prominent cryptocurrency exchange on the global stage, continues to face legal challenges while expanding its trading services. The company has recently come under scrutiny, with legal obstacles arising in Nigeria.
In May, Binance’s compliance chief in Nigeria was detained, although the company made it clear that this did not impact its decision-making authority. These events have occurred amidst increasing regulatory pressures that have kept Binance in the spotlight, particularly in relation to its operations and compliance standards worldwide.
Despite these challenges, Binance remains committed to improving its services. On May 28, the exchange announced the introduction of new trading pairs on its platform, in response to the growing demand for cryptocurrency trading in different regions.
However, BNB prices have been underperforming recently. Since May 22, the token’s price has dropped by nearly 5%, hitting a daily low of around $596 on May 29. Despite this, the token does show some bullish technical indicators that could attract buyers to the market.
As part of its ongoing efforts to provide diverse trading options and enhance the overall trading experience, Binance plans to open trading for several new pairs, including BTC/MXN, XRP/MXN, ENS/USDC, and LDO/USDC. The decision to list Mexican peso (MXN) pairs reflects the increasing adoption of cryptocurrency in Latin America, particularly in Mexico where the demand for digital assets is on the rise.
In addition to the new trading pairs, Binance will also enable Trading Bots services for these pairs. This service allows users to automate their trading strategies, potentially increasing their trading efficiency and effectiveness.
However, Binance has specified that residents in certain regions, including Canada, Cuba, Iran, and the US, will not be able to trade these new spot pairs. This restriction highlights the regulatory challenges that Binance faces as it strives to expand its global presence.
Although the BNB coin price has formed a bullish technical pattern known as the ‘ascending triangle,’ it will require effort from the bulls to break out and confirm the pattern.
According to historical data, an ascending triangle pattern is formed by a horizontal trendline connecting swing highs and an ascending trendline connecting swing lows. The volume of trading activity also plays a role in determining the strength of a breakout. In ideal conditions, buyers would enter the market as the trendlines converge.
If this scenario plays out, the token’s price would surge above the horizontal resistance with significant trading volumes. Based on the rules of technical analysis, the price target for a breakout is equal to the height of the triangle at its widest point. If the bullish pattern materializes, the BNB price could potentially reach a theoretical target of around $802, representing a 34% increase from current levels.
In the meantime, the BNB coin price has been relatively stagnant since May 23, indicating that market participants are awaiting a significant movement in either direction before entering. If the token starts to rally as a result of Binance’s expansion efforts, it will face resistance at the 0.618 Fibonacci retracement level near $626 and the 0.786 Fibonacci level near $661. On the other hand, if a downtrend occurs, the BNB price could drop to the 50-day Exponential Moving Average (EMA) support level near $576.
Failure to hold the immediate support could lead the token to test the support near $545 before any potential recovery. The Relative Strength Index (RSI) for BNB remains neutral, with a score of 53.21 on the daily charts.
