Binance Coin Price Poised for a Big Jump: Here’s Why

If you’ve been keeping an eye on the Binance Coin (BNB) price, you might have noticed that it’s been holding steady above $700. But what’s really exciting is that a unique chart pattern is hinting at even more gains on the horizon – potentially up to $1,155 in the near future.

As of January 1st, BNB was trading at $707, just a few points shy of its December high of $794. And let’s not forget that it’s already surged an impressive 200% from its 2024 low. So, what’s driving this momentum? There are three key catalysts that could propel BNB to new heights in the first quarter of this year.

1. Token Burns: Reducing Supply, Increasing Value

The Binance network has been consistently burning its tokens, which is expected to reduce the outstanding coins from 144 million to 100 million over time. This process, known as autoburn, is set to conclude a massive 1.63 million token burn worth $1.01 billion soon, followed by another 1.5 million BNB coins worth $1.089 billion in the first quarter.

But that’s not all – the network also burns tokens daily from gas fees generated, which has already incinerated 246,950 coins with a value of over $175 million since its inception. This approach not only makes BNB tokens rarer but also increases the staking yields for investors. Although the staking yield has dropped from 12% in November to 2.3%, the staking ratio has risen slightly to 20.32%.

2. A Thriving Ecosystem

Despite rising competition in the industry, the Binance Smart Chain ecosystem is doing remarkably well. With over 905,640 active addresses, a total value locked of over $5.5 billion, and stablecoins worth $6.86 billion, it’s clear that BNB is a force to be reckoned with.

The DEX protocols on BNB Chain have also seen significant growth, with a 10% increase in volume over the last seven days to over $13.42 billion. This brings the total volume since inception to a staggering $1.16 trillion, making it the second-largest player after Ethereum (ETH). 3. Strong Technicals: A Cup and Handle Chart Pattern

Now, let’s take a look at the technicals.

The weekly chart shows that BNB price has been slowly forming a cup and handle chart pattern, a popular sign of continuation. The cup section formed between 2021 and June 2024, while the handle area formed between June and November. By measuring the depth of the cup, we can estimate the potential price target.

With a depth of about 74%, the BNB price target is $1,155, which is approximately 63% above the current level. Overall, it’s an exciting time for Binance Coin, with a combination of token burns, a thriving ecosystem, and strong technicals all pointing to a potential price surge.

Reported by Crypto.news

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