Binance Coin Price Forms Cup and Handle Pattern as Ecosystem Expands Ahead of Pascal Update

Binance Coin (BNB) has formed a significant cup and handle pattern, signaling a potential bullish trend. The fifth-largest cryptocurrency was trading at $660 on Friday, up 30% from its lowest point this month.

Pascal Hard Fork: A Catalyst for BNB’s Price

The upcoming Pascal hard fork, scheduled for activation in March, is expected to be an important update for the BNB Chain network. This update will introduce better Ethereum compatibility, smart contract wallets, and more tools to build better decentralized applications (dApps).

Pascal will be one of the few scheduled BNB Chain upgrades this year, followed by Lorentz in April and Maxwell in June. These upgrades aim to reduce the block reward time from 1.5 seconds to 0.75 seconds.

BNB Chain’s Growing Ecosystem

These upgrades come at a time when the BNB Chain is doing relatively well. The network has flipped Solana and Ethereum in terms of decentralized exchange volume, handling over $21.48 billion in the last seven days. The total value locked in the ecosystem has risen to $5.7 billion, while the bridged TVL has soared to $14 billion. Its stablecoin market cap has also increased to $6.9 billion.

BNB Price Technical Analysis

The two-week chart indicates that BNB’s price has been consolidating this year, forming an ascending channel connecting higher highs and higher lows since December. This price movement aligns with the development of a cup and handle pattern, a bullish indicator in technical analysis.

BNB has now reached a key resistance level at $667, marking the upper boundary of the C&H pattern, whose depth is 70%. If this pattern holds, BNB’s price could surge to $1,125 in the long term, representing a 70% increase from current levels. However, the bullish outlook would be invalidated if BNB drops below $505, its lowest point this month.

Key Takeaways

  • BNB’s price has formed a cup and handle pattern, signaling a potential bullish trend.
  • The Pascal hard fork is expected to be an important update for the BNB Chain network.
  • BNB Chain has flipped Solana and Ethereum in terms of decentralized exchange volume.
  • The total value locked in the ecosystem has risen to $5.7 billion.
  • BNB’s price could surge to $1,125 in the long term if the cup and handle pattern holds.

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