- BNB makes an almost 4% surge to reach a significant level following reports that MGX has invested $2 billion in Binance.
- Another analyst who spotted two bullish patterns in the BNB price chart has tipped the asset to hit $1,500 this year.
Binance Coin (BNB) emerged as one of the best-performing coins in the last 24 hours, surging by 3.8% to trade at $580. Regardless, the price is far below its all-time high price of $793, recorded on December 4, 2024.
Researching the reasons behind the rally, we found that BNB is reacting to the latest report that Abu Dhabi-based AI and advanced technology investor MGX has invested a staggering $2 billion in Binance.
According to reports, this is Binance’s first institutional investment. Beyond this milestone, the move marks a significant step towards increasing digital asset adoption. Meanwhile, Binance CEO Richard Teng believes that this investment is a huge step towards building a more sustainable ecosystem, as outlined in our recent blog post.
This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance. Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection. Binance remains committed to working with regulators worldwide to establish transparent, responsible, and forward-thinking policies for the crypto industry. Our ongoing investments in security and compliance reinforce our mission to foster a secure and trusted digital financial ecosystem.
BNB On-Chain and Price Analysis
Following this announcement, the demand for BNB recorded a significant surge, with the 24-hour trading volume surging to $1.84B. Within the period, Open Interest has also increased by almost 6% to $734.93 million, while the Options Open Interest surged by 19.79% to $11.96 million.
According to our analysts, this metric implies that there has been an increased participation from institutional and retail investors. Also, the increase in long positions signifies a growing confidence in the token.
Last month, analyst Ali Martinez predicted that BNB could record a short-term rally to hit $800. According to that analysis, the major Simple Moving Averages (SMA)—the 50, 100, and 200 SMA exist as the crucial psychological levels. Also, Martinez pointed out that the 0.382 Fibonacci retracement level is a notable resistance zone that needs to be breached.
In a different report, an analyst identified as Mando CT has predicted that the asset could hit $1,500, aligning with our recent analysis. His prediction came after he observed a bullish flag and a cup and handle pattern forming on its price chart.
Agreeing with this position, an analyst known as Ash Crypto also predicted that BNB could hit between $900 and $1.400 this year.
Amidst the backdrop of this, the BNB Chain is set to launch its much anticipated Pascal hard fork on March 20 to improve the Ethereum Virtual Machine (EVM), enable gasless transactions, and enhance user experience. As featured in our recent coverage, this upgrade is expected to boost the operational speed and performance of the network.
