Binance made a major expansion and partnership-related announcements recently. On 3 October, Binance announced that it signed a memorandum of understanding (MoU) with the Financial Monitoring Agency of Kazakhstan.
The MoU was signed as part of its ongoing efforts to educate law enforcement agencies around the world. Furthermore, as per the announcement, the company also set up offices in the Brazilian cities of Sao Paulo and Rio de Janeiro.
These announcements coupled with recent developments from Binance might impact the dominance of the BUSD and the positive price movement of the Binance Coin [BNB].
Here’s AMBCrypto’s Price Prediction for Binance Coin for 2023-24
Positioning BUSD for dominance
Binance’s BUSD auto-conversion, which converts new deposits of USDC, USDP, and TUSD to BUSD at a 1:1 ratio, was announced on 5 September.
The exchange’s goal in implementing the BUSD auto-conversion was, ostensibly, to boost liquidity, and it was implemented on 29 September.
In terms of market cap, BUSD was now the third largest stablecoin, after USDT and USDC. According to Coinmarketcap, BUSD had a market cap of over $20 billion, with over $6 billion traded in the last 24 hours. In comparison to USDC, this trading volume was significantly higher.
Sideways but bullish
In recent weeks, the BNB price mainly moved sideways. However, following the news on 3 October, there was a rise in price. BNB began trading at $284.7, reached a high of $289.1, and closed at $286.9. As of the time of this writing, it was trading around $290.
On a daily time frame, the $256 area provided strong support, but fresh support appeared to be emerging in the $278 area. The $300 area was acting as resistance for quite some time.
Source: TradingView
Additionally, the Relative Strength Index (RSI) showed a bullish trend, with the RSI above the neutral line. The RSI reading above 50 indicated buying pressure was increasing relative to its level at the start of the period.
Based on the data provided by the Awesome Oscillator (AO), it was clear that the bullish trend was not particularly robust.
The plus DI and signal line of the Directional Movement Index (DMI) hovered just above 20, which also indicated a weak bullish trend.
Furthermore, the 30-day Market Value to Realized Value (MVRV) ratio for BNB was above 18%, which indicated that the asset was in the overvalued zone. In this region, sellers could step in as traders cashed out their gains.
Source: Santiment
However, developer activity was stagnant at 0.02, which suggested that the chain was not actively developing new features.
Source: Santiment
It’s to be noted here that Binance also announced on 29 September that it had opened local offices in New Zealand and registered with the Ministry of Business, Innovation, and Employment there.