Binance Coin Price Falls as BlackRock’s BUIDL Joins BSC: Will it Rebound?

Key Insights

• Binance Coin price has crashed by 32% from the year-to-date high.
• BlackRock’s BUIDL has joined the BSC Chain as its RWA network keeps rising.
• Technical analysis points to a potential rebound if it defends the support at $881

Binance Coin price continued its strong downward trend on Friday, mirroring the performance of most cryptocurrencies. BNB token plunged to a low of $885, down sharply from the year-to-date high of $1,375. So, will the BNB price rebound now that BlackRock’s BUIDL has joined the BSC network?

BlackRock BUIDL Joins Binance Smart Chain

The BNB price continued its downtrend on Friday as hopes of more activity in the BSC Chain accelerated. One major catalyst for this is that BlackRock’s BUIDL fund joined the BSC Chain, a notable situation since it is the biggest tokenized fund in the world with over $2.5 billion in assets under management.

The BUIDL fund will now compete for assets from other chains like Ethereum, Avalanche, Aptos, Polygon, and Solana.

This launch happens as the total value locked (TVL) in its Real World Asset (RWA) ecosystem continues growing. Data shows that the TVL of its RWA network has jumped by 62% in the last 30 days to over $952 million. This makes it the sixth biggest chain in the RWA industry after Ethereum, ZkSync, Polygon, Avalanche, and Aptos.

The BSC network has several other tokenized funds in its ecosystem, including Circle USYC, VanEck Treasury Fund, and  CMS Asseto Secure Hold+.

The BUIDL fund is joining BSC as data compiled by Nansen shows that the network is growing, with its transactions rising by 22% in the last 30 days to over 530 million. Its transaction count was much higher than other chains like Ethereum, which handled 45 million transactions and Tron, which handled 305 million.

BSC DEX and Stablecoin Growth is Continuing

The BSC Chain is also doing well in other areas. For example, its total stablecoin supply rose to over $13.7 billion, while the adjusted transaction volume stood at $231 billion. This makes it one of the most active chains in the stablecoin industry.

Additionally, the network was the most active chain in the decentralized exchange (DEX) industry. Data shows that the DEX volume stood at over $3.51 billion in the past 24 hours, higher than Solana’s $3.34 billion and Ethereum’s $3.1 billion.

Meanwhile, there are chances that the Securities and Exchange Commission (SEC) will approve the spot BNB ETF filed by VanEck and REX-Osprey.

Binance Coin Price Technical Analysis

The daily timeframe chart shows that the Binance Coin price peaked at a record high of $1,375 on October 13. This was a significant increase from the year-to-date low of $504, a 170% surge.

It then pulled back to a low of $881, its lowest level on October 11, November 4, and 14. It has formed what looks a triple bottom pattern whose neckline was at $1,375.

The BNB price has moved below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears are in control for now. These two lines are about to converge and form a mini death cross pattern.

Binance Coin price has moved below the 50% Fibonacci Retracement level at $940. It has moved to the Strong, Pivot, Reverse level of the Murrey Math Lines tool.

Therefore, the most likely BNB price forecast is neutral, with the key support level to watch being at $881. A move below this support will point to more downside, potentially to the ultimate support of the Murrey Math Lines tool at $750.

On the flip side, a move above the Major S/R Pivot Point at $1,000 will invalidate the bearish outlook and point to more upside, potentially to the all-time high of $1,375.

Summary

The Binance Coin price has remained in a strong downward trend in the past few months as it crashed from the all-time high of $1,375 to the current $922. The coin could rebound after the expansion of BlackRock’s BUIDL to the network. This will only happen if it remains above the support at $881.