DailySun
The price of Binance Coin has been consolidating at a significant resistance level, with recent upward momentum beginning to wane.
On November 29, the Binance Coin (BNB), the official token of the BSC network, was trading at $655. It has experienced a remarkable increase of 223% from its lowest point in 2023 and a 9% rise in November, which is lower than the performance of most leading cryptocurrencies.
Strong fundamentals and promising technical indicators suggest that the BNB coin could see further gains in December. The BSC ecosystem has shown robust activity, with the total value locked in its DeFi sector rising 18% to $5.53 billion over the last month.
Additionally, the trading volume across its DEX protocols, including PancakeSwap (CAKE) and Uniswap, exceeded $34 billion during the same timeframe, with PancakeSwap accounting for nearly $30 billion.
Recent data indicates that the network is actively decreasing coin circulation through burning mechanisms. In the past week alone, 652 BNB coins valued at $429,000 were burned, contributing to a total of $160 million in coins eliminated, which aims to reduce the total supply from 144 million to 100 million in an effort to combat inflation.
This continuous burning process, along with increasing network revenue, has substantially enhanced staking yields, with rates currently at 12.5%. Therefore, a $100,000 investment in BNB could potentially result in an annual return of approximately $12,500.
BNB price technicals suggest $1,100 is achievable
The weekly chart reveals that Binance Coin could experience further upside in the upcoming weeks. A cup and handle pattern has been forming since October 2021, with a resistance level at $665. This bullish configuration includes a horizontal line, a rounded bottom, and a phase of consolidation or retracement.
The cup’s depth is approximately 70%. Using this measurement in relation to the $665 resistance suggests that the coin could rise to $1,130 following a breakout. To achieve this, BNB must breach critical resistance levels at $875, which is the extreme overshoot of the Murrey Math Lines, along with the psychological barrier of $1,000.
The invalidation point for this bullish perspective is $437, marking the bottom of the trading range as indicated by the Murrey Math Lines tool.
