Currently, the price of Binance Coin is stabilizing at an important resistance level, with recent trends suggesting a potential decline in momentum in its upward trajectory.
As of November 29, Binance Coin (BNB), the primary token of the BSC network, was trading at $655. The token has seen an impressive rise of 223% from its lowest point earlier in 2023 and a 9% increase in November; however, it has underperformed compared to several top cryptocurrencies.
Robust fundamentals and technical signals indicate that BNB might experience further appreciation in December. The BSC ecosystem is flourishing, evidenced by an 18% increase in the total value locked within its DeFi sector, which has now reached $5.53 billion over the last month.
Moreover, the trading volume for cryptocurrencies on its decentralized exchange (DEX) platforms, including PancakeSwap (CAKE) and Uniswap, surpassed $34 billion in the same period, with PancakeSwap contributing nearly $30 billion to that figure.
Current statistics reveal that the network is continuing to decrease coin supply through burning mechanisms. In the past week alone, 652 coins worth $429,000 were burned. Cumulatively, the network has eliminated coins valued at $160 million, aiming to decrease the total supply from 144 million to 100 million as a measure against inflation concerns.
This sustained burn process, in conjunction with rising network revenue, has considerably increased the staking yield, currently at 12.5%. This suggests that an investment of $100,000 in BNB could yield approximately $12,500 annually.
Technical Analysis Suggests $1,100 is Achievable for BNB
The weekly chart indicates that Binance Coin may experience additional increases in the upcoming weeks. Since October 2021, it has formed a cup and handle pattern, with a resistance level at $665. This bullish formation is characterized by a horizontal line, a rounded bottom, and phases of consolidation or pullback.
The depth of the cup is roughly 70%. By projecting this measurement from the $665 resistance point, it suggests that the coin could rise to $1,130 following a breakout. To reach this goal, BNB must first clear substantial resistance levels at $875, which signifies a significant overshoot of the Murrey Math Lines, along with the crucial psychological resistance at $1,000.
The threshold for invalidating this outlook is set at $437, representing the lower boundary of the trading range according to the Murrey Math Lines framework.
