- BNB coin price has been in a consolidation phase in the past few days.
- It has formed an inverted head and shoulders ahead of the Gibbs upgrade.
BNB price has moved sideways in the past few days as investors wait for the upcoming Gibss testnet hard fork that is scheduled to happen this month. The token also wavered after Binance announced a shift to its stablecoin support, which could have an impact on its ecosystem. It was trading at $282, which is about 16% below the highest point in August.
Gibbs upgrade on the BNB Smart Chain
BNB Smart Chain is a blockchain operating system that aims to be a viable alternative to Ethereum and other smart contract platforms like Solana and Polkadot.
It was built by Binance and has seen its market share grow in the past few years. For example, it is the third-biggest player in the DeFi industry after Ethereum and Tron. It is also a leading player in the metaverse, infrastructure, and non-fungible tokens (NFT). BNB is the native token for the ecosystem.
The next key catalyst for the BNB price is the upcoming Gibbs upgrade testnet that will happen later this month. This upgrade has been named after Josiah Willard Gibbs, a scientist who worked hard in physics, chemistry, and mathematics. He was the co-creator of statistical mechanics.
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According to the developers, this upgrade will introduce native staking protocol on BNB Smart Chain. As a result, individuals or institution delegators can stake BNB to specified validators and get staking rewards on BSC directly.
BNB price is also wavering after Binance announced that it will convert USDC, Pax Dollar, and True USD deposits into its own Binance USD (BUSD) coin. The company said that the move was necessary to enhance liquidity and capital efficiency for users. Therefore, this move will likely have an impact on the amount locked in Binance USD, which is based on the BNB Smart Chain.
BNB price prediction
The daily chart shows that the BNB price has been in a tight range recently. As a result, the coin is consolidating at the 25-day and 50-day moving averages. It has also formed an inverted head and shoulders pattern, which is usually a bullish sign. The neckline of this pattern is at $336.
Therefore, the coin will likely have a bullish breakout in the coming weeks as investors wait for the testnet hard fork. If this happens, the next key level to watch will be at $336. A drop below the support level at $250 will invalidate the bullish view.
