The Binance Coin price has been in a strong bullish trend in the past few days. Binance Coin rose to a high of $337, which was the highest level since May. It has rebounded by more than 80% from its lowest level this year.
Elon Musk Twitter purchase
BNB and DOGE prices have rallied sharply in the past few days as investors focus on Elon Musk’s purchase of Twitter. Twitter is one of the biggest social media companies in the world with more than 200 million daily users.
Dogecoin price rose because Elon Musk has emerged to become one of its biggest supporters. It is estimated that he owns DOGE worth millions of dollars.
Meanwhile, BNB price has risen because Binance was one of the companies that contributed in Musk’s Twitter purchase. It is unclear how much money Binance contributed to the acquisition. Excluding banks, Elon Musk’s friends contributed over $7.1 billion in Twitter’s buyout.
Therefore, analysts believe that Binance will play an important role in Twitter going forward. There are several ways that this can happen. First, Twitter and Binance could partner to offer more crypto-related services. Binance is the biggest crypto exchange in the world.
Second, Twitter could select the BNB Smart Chain to become its preferred blockchain provider. There is precedence to this since Instagram has selected Flow to be its NFT infrastructure provider. Further, Twitter could incorporate Binance USD as a payment option in its platform.
Still, all these are hypotheticals and it is unclear how this relationship will evolve in the long term. Historically, too much enthusiasm has led to significant disappointments in the long term. For example, FLOW price has struggled despite partnering with Instagram and Facebook.
BNB price rose as the BNB Smart Chain reclaimed second place in DeFi rankings from Tron. It has a TVL of over $8.3 billion, which is higher than Tron’s $6.1 billion.
BNB price prediction
The daily chart shows that the Binance Coin has been in a strong bullish trend recently. In this period, it has managed to move above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, the coin will likely pullback in the coming days as enthusiasm about Twitter’s acquisition fades. If this happens, it will likely retest the key support at $280.