Binance Coin (BNB) has entered a seven-day profitable streak, testing the $650 level on Wednesday. This surge aligns with strategic moves by Binance, which liquidated over 90% of its Bitcoin, Ethereum, and SOL holdings while retaining 74% of its BNB reserves. Technical indicators suggest bullish momentum could drive further gains.
Market Context and BNB's Resilience
The crypto market experienced volatility ahead of the U.S. January CPI data release, with Bitcoin (BTC) and Ethereum (ETH) dropping 2% to key support levels. In contrast, BNB maintained an upward trajectory, rising 15% from $569 on February 6 to $654 by Wednesday. This divergence highlights strong underlying catalysts for BNB.
Key Drivers:
- Portfolio Restructuring: Binance reallocated $5.9 billion from BTC, ETH, and SOL to consolidate BNB positions.
- Technical Strength: Bullish indicators point to potential resistance tests at $675, with a breakout target of $700.
Binance’s Strategic Portfolio Shifts
A report by Tokyo-based analyst Kuai Dong reveals Binance’s dramatic reduction in major crypto holdings:
| Asset | Reduction (%) | Value Liquidated | Current Holdings |
|---|---|---|---|
| Bitcoin | 94.1 | $4.33B | 2,747 BTC |
| Ethereum | 99.9 | $583M | 175 ETH |
| Solana | 99 | $89M | 4,179 SOL |
| BNB | 26 | N/A | 74% of reserves |
Notable Changes:
- Stablecoins: USDT reduced by 99.9%, while USDC reserves grew 57.5% (+$463M).
- Implication: Binance prioritizes BNB for liquidity and ecosystem stability.
Technical Analysis and Price Forecast
Current Status ($646.72):
- Keltner Channel: Mid-band ($634.53) acts as support; upper band ($704.59) marks breakout target.
- RSI (51.21): Neutral-to-bullish momentum.
- Parabolic SAR: Bullish signal at $519.44.
Projections:
- Bullish Scenario: A close above $650 could propel BNB to $704.59.
- Bearish Risk: Failure to hold $634.53 may trigger a drop to $564.48.
👉 Explore BNB’s latest trends on OKX
FAQs
1. Why is BNB outperforming BTC and ETH?
BNB benefits from Binance’s strategic retention and reduced supply pressure compared to liquidated assets like BTC.
2. What does Binance’s portfolio shift mean for BNB?
It signals confidence in BNB’s role as a core asset, likely boosting long-term demand.
3. Can BNB reach $700?
Yes, if bullish momentum sustains and $650 resistance turns to support.
Conclusion: Binance’s restructuring underscores BNB’s centrality to its financial strategy. With technicals favoring bulls, BNB could challenge higher resistance levels, provided market sentiment remains positive.