The BNB price has held steady in the past few days, but technicals suggest that the coin may surge as the staking reward surges ahead of the upcoming Lorentz upgrade. Binance Coin was trading at $550 on Wednesday, making it one of the biggest tokens in the crypto industry.
BNB Price May Rise Ahead of the Lorentz Upgrade
The BNB Smart Chain (BSC) has been in the spotlight in the past few months as the developers intensified their upgrades as they sought to compete with Ethereum and Solana.
They conducted the Pascal upgrade in March, which led to more integration with Ethereum, the biggest layer-1 chain in the crypto industry. This upgrade means that dApps in the network can now communicate well with those in Ethereum.
The developers are now working on the Lorentz upgrade, whose primary role will be to reduce the block time from 1 second to 500 milliseconds. It will enhance the transaction efficiency by boosting transaction speeds.
The Lorentz upgrade went live on the testnet on April 2, while the mainnet launch is expected to happen later this week or next. Historically, crypto prices rise ahead of a major network upgrade.
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The Lorentz upgrade will be followed by Maxwell, which will reduce the speeds to 0.75 seconds. This upgrade will happen in June of this year.
The developers are hoping that these features, together with the vibrant BNB Chain ecosystem, will help it compete better with Solana and Ethereum. Solana’s network, while good, has been clogged by its meme coins, while Ethereum is known for its slow speeds.
BNB price may also rise due to its high staking yield of 8.27%, which is higher than other comparable tokens like Solana, Tron, and Ethereum.
Binance Coin Price Technical Analysis
The weekly chart shows several bullish catalysts for the BNB price. It has remained above the 85-week Exponential Moving Average (EMA), which has offered crucial support.
BNB has also formed a symmetrical triangle pattern whose two lines are about to converge. Bullish and bearish breakouts happen as the two lines approach their convergence.
Most importantly, the coin is forming a cup and handle pattern, a popular bullish continuation sign. Therefore, it is likely to have a bullish breakout in the next few months. The initial target for this price is $670, which is up by 20% from the current level. A move above that price will point to more gains to $1,000.
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