BNB Price Gains Momentum Above $635 Amid Trump-Backed Stablecoin Test and $100M Liquidity Push
BNB Chain (BNB) is currently trading just under $640, marking a 2.50% increase over the past 24 hours. This upward movement comes on the heels of significant developments within the BNB Chain ecosystem, including the testing of a new stablecoin by World Liberty Financial, a project backed by former US President Donald Trump, and the launch of a substantial $100 million liquidity program aimed at bolstering its native projects.
Trump-Backed World Liberty Financial Tests USD1 Stablecoin on BNB Chain and Ethereum
DeFi venture World Liberty Financial (WLFI), connected to Donald Trump and his family, has been aggressively testing its new US dollar-pegged stablecoin USD1 on the BNB Chain and Ethereum networks. Lookonchain’s on-chain data recorded contacts between the USD1 contract and a wallet apparently connected to crypto market creator Wintermute, implying tests of cross-chain technologies.
Although the stablecoin contract was launched earlier this month, WLFI has warned consumers about possible frauds by stating USD1 is not currently actively trading. Following earlier endeavors like a memecoin launch on Solana, this action is Trump’s most recent entry into the cryptocurrency scene. WLFI’s larger goals include creating an on-chain lending and borrowing marketplace, hence extending the use cases of stablecoins within distributed finance (DeFi) on the BND Chain.
Beyond the USD1 stablecoin, World Liberty Financial has outlined ambitious plans to develop a comprehensive suite of DeFi products on the BNB Chain. These include an on-chain lending and borrowing marketplace powered by smart contracts and a protocol focused on real-world assets (RWAs). This strategic focus on expanding DeFi use cases could further drive adoption of BNB Chain-based assets and potentially contribute to the price appreciation of BNB.
BNB Chain Launches $100 Million Liquidity Program to Boost Native Project Listings
In a major step to improve its ecosystem, BNB Chain has announced a $100 million liquidity program meant especially to encourage the listing of native BNB Chain projects on centralized exchanges (CEXs). The network will mostly distribute these money in the form of native BNB tokens to initiatives that effectively list on any one of the eleven main CEXs identified by BNB Chain.
This project seeks to raise the awareness and accessibility of BNB Chain-based tokens, so promoting project expansion and hence enhancing the general liquidity inside the ecosystem. Targeting projects with a minimum market capitalization of $5 million and a daily trading volume of at least $1 million, the program, which spans an initial three-month trial period The importance of the listing exchange will determine the rewards; top-tier exchanges like Binance and Coinbase provide the most incentives—including up to $500,000 in permanent liquidity.
BNB/USD Technical Analysis: BNB Breaks Above $635 Resistance, Eyes $700 Target
Technically, BNB has given encouraging signals; Monday’s 3% price rise marks a crossing of the $635 level with higher trade volumes, thereby indicating growing market interest. Higher lows on the daily candlestick chart point to a continuous uptrend under progress. The Donchian Channel (DC) emphasizes at $643.72 the next main resistance level. A clear break above this level might open the path towards the $660 psychological barrier, which is regarded as a vital milestone before a possible movement towards the $700 price target starts to take place.
Bullish Momentum Supported by Rising Trading Volume and Neutral MFI
A notable rise in trading activity supports the current price jump in BNB, therefore signaling great investor interest. Moreover, the Money Flow Index (MFI) is in neutral area and right now stands above 76. This implies that there is still possibility for more gains until overbought circumstances are achieved, therefore supporting the upward momentum toward the $700 goal.
Key Support Levels to Watch if Bullish Momentum Falters
Although the optimistic view seems strong, failure to break above the $643.72 barrier might cause a reversal towards the bottom Donchian Channel border, now roughly $575.36. Buyers could find a possible re-entry point here. A breach below $575 would challenge the present optimistic view and expose BNB to more downside pressure below the lower liquidity zone, $507 level.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals