BNB Price Forecast: BNB rally stalls as Pasteur hardfork launches on BSC mainnet

Source Fxstreet
  • BNB extends its correction below $700, as the crypto market broadly cools following last week’s breakout.
  • BNB Smart Chain activates Pasteur hardfork on the mainnet, strengthening the protocol’s bridge, staking and security.
  • The upgrade also ensures a real validator count for bridge approvals and fits more transactions into blocks.

BNB (BNB) shows subtle weakness, sliding below $700 on Tuesday. Last week's broader crypto rally propelled BNB to $725 from support around $600.

The token native to Binance, the largest crypto exchange by trading volume, flaunts a bullish picture. However, momentum indicators signal that the uptrend may be overstretched, raising the odds of an extended correction.

If bulls reclaim support above $700, consolidation above this level could encourage traders to increase risk exposure, anticipating a medium-term breakout past $725 and toward $1,000.

BNB Smart Chain activates Pasteur hardfork

BNB Smart Chain (BSC) activated the Pasteur hardfork upgrade on the BSC mainnet on Tuesday. According to the announcement, the software upgrade aims to close bridge verification and validator authorization gaps. At the same time, the hardfork has been designed to increase the number of transactions bundled into each block.

The BSC mainnet now verifies the number of signatures against a validator set. Before the Pasteur upgrade, the protocol did not verify that a validator appeared only once, leaving room for transaction manipulation with fewer real signatures.

For validators, Pasteur ensures proper retirement of old keys, stripping them of all privileges. Moreover, the protocol rejects blacklisted addresses in signature-based governance votes.

In a nutshell, the hardfork upgrade introduces a new framework for specialist builders to submit blocks to validators. It improves bridge approval integrity by counting each validator only once in bridge approvals, revoking outdated validator keys, restricting voting by certain addresses, and optimizing block capacity during periods of high network congestion.

Technical analysis: Is the BNB bullish trend overheating?

BNB trades around $698, following a minor correction from the daily high at $725. Despite the correction, the token is extending a strong bullish phase, while holding well above its key Exponential Moving Averages (EMAs).

The latest Parabolic SAR reading at $665 also sits below the spot price, suggesting the trend remains intact despite signs of overheating. Momentum remains firmly positive, with the Moving Average Convergence Divergence (MACD) firmly in positive territory and the Relative Strength Index (RSI) hovering above 80, hinting at an overbought but still buyer-controlled environment.

BNB/USDT daily chart

Initial support lies at the Parabolic SAR level near $665, where a pullback could first stabilize. Below that, the 200-day EMA around $643 provides a deeper structural floor, followed by a thicker demand band formed by the clustered 50-day and 100-day EMAs just above $613. As long as BNB holds above these moving averages, the near-term bias remains constructive, though the elevated RSI warns that any slip below $665 could trigger a sharper corrective phase toward the EMA cluster before buyers attempt to reassert control.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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