Binance Coin recoils at key level ahead of Lorentz upgrade

Binance Coin price is wavering at a crucial resistance level as focus turns to the upcoming Lorentz upgrade. 

Binance Coin (BNB) traded at the psychological level of $600 on Sunday, slightly below this month’s high of $630 and 15% above its lowest point this month.

The main catalyst for the BNB price will be the Lorentz upgrade, which will happen on April 29. This is one of the three upgrades of the year. Its goal will be to make BSC one of the fastest chains in the crypto industry. 

The Lorentz upgrade will reduce the block time from 3 seconds to 1.5 seconds. The goal is to cut latency and accelerate transaction confirmations. Faster speeds will also enhance the responsiveness of decentralized applications on the network.

The BSC developers will continue building after the Lorentz upgrade as they seek to launch the Maxwell upgrade in June. Like Lorentz, Maxwell hopes to supercharge the network’s transaction speed by reducing block times to 0.75 seconds. 

BSC builders hope to catch up with Solana (SOL) over time. Due to its combination of proof-of-stake and proof-of-history, Solana now has block times of approximately 0.4 seconds. 

Ethereum (ETH), on the other hand, has block times of 12 seconds, making it a slower chain than its biggest competitors.

The Lorentz upgrade comes after the developers launched the Pascal hard fork, which increased Ethereum’s integration, introduced gasless transactions, and enhanced security. 

BSC developers hope the network will be the most viable alternative to Solana and Ethereum. Solana has become the home of meme coins, while Ethereum is known for its slow speeds and high transaction costs. 

BNB price technical analysis

The daily chart shows that the BNB price formed a triple-bottom pattern between $507 and $520. These levels formed the lower side of the descending triangle pattern, a popular bearish continuation sign. 

The coin now sits on the upper side of the triangle pattern and is consolidating at the 100-day and 50-day moving averages. Therefore, the outlook is neutral for now. More gains will be confirmed if the coin rises above $620, the highest point this month. This move will see it jump to the next resistance at $720, its highest level in June last year.

The alternative scenario is for the Binance Coin price to drop and retest the lower side of the descending triangle pattern at $507.