Binance coin (BNB) is on a roll after an investment firm focused on digital assets unveiled plans to launch a BNB treasury firm. “With strategic support from YZi Labs (formerly Binance Labs), the treasury firm aims to raise $1 billion, with further growth potential.” Following this announcement, the BNB coin appreciated and broke above a key resistance level.
In a significant move, investment firm B Strategy announced that it will launch a U.S.-listed BNB treasury company to raise $1 billion. Backed up by YZi Labs — the investment firm led by Binance co-founders Changpeng Zhao and Yi He, the treasury seeks to raise a billion dollars.
The new venture aims “not only to hold BNB as a treasury but also to become the ‘Berkshire Hathaway’ of the BNB ecosystem.”, read the official press release. The company will allocate capital and resources to foster ecosystem growth by investing in core technology development, providing grants for innovative projects, and supporting community initiatives.
Though the treasury is U.S.-listed, however, the firm will leverage B Strategy’s extensive Asia-Pacific footprint, which spans Hong Kong, ASEAN, the Middle East, and other key markets. This will assist it in accessing deep pools of liquidity, market intelligence, and distribution, enabling the follow-the-sun principle where its service is available 24/7.
Can BNB hit a new all-time high in bearish technical conditions?
The announcement got the BNB community riled up, and the coin broke above the $860 level, which was obstructing its upward motion.
On the fundamental front, the launch of the treasury firm helped BNB coin to cross above the $860 level. However, on the technical phase, BNB has gloomy conditions as it is trading inside a rising wedge. In this setup, buyers push the prices higher (higher high), but with weaker momentum. This keeps on going for some time until the buyers are exhausted and the prices crash. So, in this bearish outlook, will BNB hit a new all-time high?
BNB will cross above $900 inside the rising wedge
Let’s do some thinking. Firstly, the rising wedge pattern is not fully formed. This means that BNB will keep fluctuating inside the wedge’s trendlines for some time before the breakout. Given that it continues to fluctuate inside the wedge, BNB could cross above $900, which could be a new all-time high.
Technical indicators support BNB reaching a all-time high
Secondly, let’s take a look at the indicators. Do the indicators support BNB achieving this feat? The relative strength index (RSI), which measures whether the market is overbought or oversold, is neutral at 53. But here’s an observation you can’t miss.
When BNB made its first higher low inside the wedge, the RSI was close to 50, and with the RSI hovering close to 50 again, another higher low is on the cards for BNB. This means the pattern will continue and BNB will eventually hit an all time while inside the rising wedge.
