On Wednesday, the majority of cryptocurrencies saw an increase in value, with Bitcoin (BTC) leading the way by reaching an intraday high of $68,267. At the same time, Binance Coin (BNB) surged to $606 before pulling back to $592 at the time of writing.
It is important to note that BNB has seen a 90% increase in value this year, nearly double the 58% gains of Bitcoin during the same period. The recent midweek surge has brought attention to the significant resistance level at $600, where the token has faced rejection on multiple occasions since June, most recently in late September.
Interestingly, BNB currently has no clear resistance level between its current range and its yearly peak of $721 from June 6. The next resistance area around $620 was established and tested before the peak in June.
BNB Beacon Chain Nearing Retirement
While price movements capture the attention of traders, the broader Binance ecosystem is undergoing a transition as the retirement of BNB Beacon Chain approaches. The Beacon Chain operates on the Tendermint consensus mechanism, whereas the Binance Smart Chain (BSC) utilizes a hybrid consensus mechanism that combines Proof-of-Stake and Proof-of-Authority.
In an announcement on October 16, BNB Chain disclosed the upcoming retirement of the BNB Beacon Chain, scheduled for the coming month. This retirement is part of BNB Chain’s strategy to streamline its blockchain ecosystem and focus on its primary platform, the Smart Chain. The BNB Chain Fusion project aims to enhance efficiency by integrating the Beacon Chain’s functions into the Smart Chain.
Stabilization of Active Addresses on BNB Smart Chain
The integration of Beacon Chain’s features eliminates the need for the cross-chain bridge that connected the two chains previously, simplifying the network structure. BNB Chain emphasized the development challenges and security vulnerabilities associated with the cross-chain bridge as reasons for its decommission.
Notably, the BSCScan tool revealed that on-chain activity on the BNB Smart Chain remains robust. The number of active daily addresses has stabilized above 1 million in recent weeks after a decline between June and September, indicating sustained user engagement as the chain evolves.
Prospects of BNB Breaking the $600 Barrier
On October 14, BNB surged to $587 before registering another daily gain by breaching $595 on October 15. The consistent positive momentum during the week has positioned BNB’s price in a critical zone on the charts.
While investors are eager to reach a new yearly high, a potential rejection near the all-time peak could prompt short-term traders to take profits, causing a price drop. A sustained decline below the 50-day and 100-day exponential moving averages, closely clustered between $566 and $560 on the daily chart, would signal further weakness in the price.
Meanwhile, the crucial support level at the long-term 200-day EMA of $535 may lead to a minor pullback if breached, supported by a strong demand zone above $471, near the lower end of BNB’s range-bound activity.