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Home News BNB Price Hits $574 Following $2 Billion Investment from Dubai-Based Firm

BNB Price Hits $574 Following $2 Billion Investment from Dubai-Based Firm

by Barbara

Binance Coin (BNB) surged to a 10-day high on Thursday, briefly touching $574, after news broke that Binance had secured a substantial $2 billion investment from the Abu Dhabi-based firm MGX. This investment, alongside rising demand for exchange tokens, sent BNB soaring by 13% from a recent low of $507 just two days ago.

Key Catalysts Behind BNB’s Surge:

The price rally is attributed to two main factors: MGX’s landmark $2 billion investment and the growing interest in exchange tokens, with BNB standing out due to its market leadership. While other assets like Ethereum (ETH) and PEPE also saw positive movement following the release of softer U.S. inflation data, BNB’s bullish momentum has been particularly robust.

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Binance’s dominant position in the market, handling over $100 trillion in cumulative trading volume, boosts confidence in BNB’s long-term outlook. The company’s strategic partnership with the UAE, which is becoming a global crypto hub, further strengthens the token’s appeal in both the Middle East and Asia.

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BNB’s Short-Term Outlook:

The BNB token has shown significant resilience, starting Thursday’s trading session at $570. At press time, it is hovering at $573, indicating strong buying pressure. As BNB continues to test resistance levels around the $570 mark, the next major hurdle lies at $612, where a breakout could signal a continuation of the upward trend.

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The recent rally, marked by a 13.44% surge in just four 12-hour candles, has sparked optimism for BNB’s future price action. The token’s recovery from recent lows around $507 is fueling expectations that it could soon break past $600 if it maintains this momentum.

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Technical Indicators:

BNB’s price is showing bullish signals, particularly after reclaiming the midline of the Donchian Channel. This suggests that buying pressure remains strong. The Accumulation/Distribution Line (ADL) also shows steady inflows, suggesting that the rally is supported by sustained investor interest rather than short-term speculative activity.

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However, BNB faces potential pullbacks if it fails to hold above the $559 median line. If the price slips below this level, there may be a retest of the $507 low formed earlier in the week. That being said, the sentiment remains positive, especially with speculation that the U.S. Federal Reserve may delay rate hikes, which could further boost risk assets like BNB.

Potential for Short Squeeze:

A successful break above $612 could spark a short squeeze, forcing traders with bearish positions to cover, which would push the price even higher. However, for the rally to maintain its strength, BNB needs to sustain levels above $574, which would invalidate any remaining bearish momentum.

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