Binance Coin Price Consolidation: Strong Fundamentals and Technical Indicators Point to Further Gains

The Binance Coin (BNB), the native token for the Binance Smart Chain (BSC) network, continues to consolidate at a key resistance level, trading at $655 on November 29. Despite this, its recent rally has shown signs of losing momentum, with a 223% increase from its lowest level in 2023 and a 9% gain in November.

Despite underperforming most major cryptocurrencies, BNB’s strong fundamentals and technical indicators suggest potential further gains in December. The BSC ecosystem has been performing well, with the total value locked in its DeFi ecosystem increasing by 18% to $5.53 billion over the past 30 days.

BNB’s Strong Fundamentals

The volume of cryptocurrencies traded on BSC’s DEX protocols, such as PancakeSwap (CAKE) and Uniswap, rose to over $34 billion in the same period, with PancakeSwap contributing nearly $30 billion. Additionally, the network continues to reduce coin circulation through burning, with 652 coins worth $429,000 burned over the last seven days.

In total, the network has eliminated coins worth $160 million, aiming to reduce the total supply from 144 million to 100 million, a measure designed to curb inflation. The ongoing burn, along with rising network revenue, has significantly boosted its staking yield, which stands at 12.5%. This means a $100,000 investment in BNB could yield approximately $12,500 annually.

BNB Price Technicals

The weekly chart indicates that Binance Coin has potential for more upside in the coming weeks. It has formed a cup and handle pattern since October 2021, with resistance at $665. This bullish pattern includes a horizontal line, a rounded bottom, and consolidation or retracement.

The depth of the cup is around 70%. Applying the same measurement from the $665 level suggests the coin could rise to $1,130 upon a breakout. For this to happen, BNB must surpass critical levels at $875, the extreme overshoot of the Murrey Math Lines, and the psychological level at $1,000.

Key Levels to Watch

  • $665: Resistance level and potential breakout point
  • $875: Critical level and extreme overshoot of the Murrey Math Lines
  • $1,000: Psychological level and potential resistance
  • $1,130: Potential target upon breakout
  • $437: Invalidation point for the bullish outlook

As the Binance Coin price continues to consolidate, its strong fundamentals and technical indicators suggest potential further gains in December. Investors should keep a close eye on the key levels mentioned above and be prepared for a potential breakout.

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