Recent trends in the non-fungible token (NFT) and decentralized finance (DeFi) industries have contributed to the rebound of Binance Coin (BNB) price from its lowest level this week.

Binance Coin Price Rebound

On February 6, the BNB price surged to $580, gaining approximately 17% from Monday’s low. This upward movement is attributed to the increasing utility of BNB in the NFT and DeFi sectors.

Non-Fungible Token Sales

Data shows that NFT sales on the Binance Smart Chain (BSC) network have climbed 24% in the last seven days to $1.5 billion. Additionally, the number of buyers in the network jumped 20% to nearly 24,000. In contrast, Ethereum NFT sales dropped by 40%, while Solana and Bitcoin fell by 32% and 71%, respectively.

Decentralized Finance Sector

The Binance Smart Chain network is also experiencing strong performance in the decentralized exchange sector. Transactions on the blockchain reached $2.4 billion in the past 24 hours, with a 20% increase in volume over the last seven days. Top performers include PancakeSwap, THENA, and Uniswap.

Binance Coin Burn Rate and Fees

Another potential catalyst for the BNB price is its growing burn rate. The real-time burn mechanism incinerated 477 coins worth $279,645 in the past seven days, bringing the cumulative total to 249,478 coins. The network aims to reduce the total supply from over 144 million to 100 million.

Binance Coin Technical Analysis

The weekly chart shows that BNB has formed a cup and handle pattern, a popular bullish continuation sign. The upper side of the cup is at $692, while the recent consolidation is part of the handle section. A hammer candlestick has also formed, comprising a small body and a long lower shadow. The BNB price has remained above the 50-week moving average.

Based on this analysis, BNB is likely to experience a bullish breakout in the coming months. The first resistance level to watch is $793, the highest swing in December. A move above this level could signal further gains toward $1,000.

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Some key points to consider when investing in Binance Coin include:

  • Monitor the NFT and DeFi sectors for trends and opportunities.
  • Keep an eye on the BNB burn rate and its impact on the total supply.
  • Watch for resistance levels and potential breakout points in the BNB price chart.
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