Binance Coin (BNB) Attempts to Recover From Recent Lows as the Cryptocurrency Consolidates Above the $665 Support Zone

The price currently trades below $675 and the 100-hourly simple moving average.

Binance Coin (BNB) is attempting to recover from recent lows as it consolidates above the $665 support zone. The price is trading below the $675 mark and the 100-hourly simple moving average.

On the hourly chart, BNB broke above a connecting bearish trend line with resistance at $665. The cryptocurrency also moved past the 23.6% Fibonacci retracement level of the recent decline from $691 to $653.

After forming a base above $652, BNB started a fresh increase above the $655 and $665 resistance levels. The price reached a high of $675 on Monday, reaching its highest point since February 25.

On the upside, BNB faces resistance near $672, close to the 50% Fibonacci retracement level. The next resistance is at $677, and a clear move above could send the price towards $680.

A close above the $680 resistance could set the pace for a larger move towards $685. Further gains might call for a test of the $700 level in the near term.

If BNB fails to clear the $675 resistance, it could start another decline. The initial support is at $665, with major support at $662 and $655.

Maxwell Upgrade Approaches

BNB’s recovery comes ahead of the Maxwell upgrade, which is scheduled for June. This upgrade will reduce block speeds to 0.50 seconds, down from the current 1.5 seconds achieved through the Lorentz upgrade in April.

The developers previously launched the Pascal upgrade earlier this year, deepening integration with Ethereum. The Lorentz upgrade doubled block speed from 3 seconds to 1.5 seconds.

These upgrades aim to make BNB a better option for developers compared to Solana and Ethereum. The Maxwell upgrade is the next step in improving network performance.

Growing Network Activity

BNB Smart Chain’s stablecoin supply has grown to $10.1 billion, the highest level since November 2022. Tether’s supply in the network jumped 15% in the last 30 days to $6 billion.

World Liberty’s USD1 stablecoin follows with over $2.1 billion in assets. Other top stablecoins include USD Coin (USDC), USDX, and Binance Peg BUSD.

The rising stablecoin market cap indicates increasing network activity, as these coins are the primary currencies used in blockchain transactions.

Record DEX Volume

DEX volume on BNB Chain has surged to over $102 billion this month, the highest level since November 2021. This represents a substantial increase from last month’s $29.9 billion.

PancakeSwap dominates the BNB Chain with $92.33 billion in volume over the last 30 days. The platform handled over $50.4 billion in the last 30 days and $9.9 billion in the last 24 hours.

Uniswap’s network processed almost $5 billion in the last 30 days and $3.95 billion in the last seven days. PancakeSwap’s cumulative volume has reached over $1.6 trillion.

DeFi Growth Continues

Total value locked (TVL) in the BNB network has jumped to $9.32 billion, reaching its highest point since May 2022. This growth positions BNB as one of the biggest chains in the cryptocurrency industry.

The best-performing decentralized applications in the BSC Chain include PancakeSwap, Venus, Lista DAO, and KernelDAO. Lista DAO’s assets increased by over 50% in the last 30 days.

Technical analysis of the weekly chart shows BNB has formed a cup-and-handle pattern. The depth of the cup is about 75%, suggesting a potential price target of $1,100 according to pattern measurements.

The hourly MACD is gaining pace in the bullish zone, while the RSI sits above the 50 level. Major support levels are at $662 and $655, while resistance levels are at $672 and $680.