💥Warning: Rare Pattern Could Make BNB Reach $1,200 This Week
The price of BNB, Binance's native cryptocurrency, has formed an extremely rare pattern that could push its value to $1,200 in the coming months. Currently trading at $620, according to CoinGecko, this marks a potential 100% gain.
From its yearly low, BNB has surged 240%, reaching a market cap of $86 billion. The rare “cup and handle” pattern is behind this projection, which has historically driven above-average gains for assets.
Analysis of BNB
The “cup and handle” pattern consists of a rounded bottom followed by consolidation or a pullback at the top, as shown in historical charts. BNB first formed this pattern in November 2021, reaching $665.
Between 2022 and 2023, BNB dropped significantly, hitting a low of $200. However, it has since rebounded, retesting its 2021 highs and forming the cup’s base. Stabilization in 2023 completed the “cup,” and a Bitcoin (BTC) rally in 2024 started forming the “handle.” In August, BNB's price action included a doji pattern, which spurred renewed momentum.
If BNB cleanly breaks above its current resistance, it could hit $1,200. However, the cup-and-handle pattern is a long-term formation, taking over three years for the cup to form and eight months for the handle. Thus, this is not a short-term trading strategy.
Optimistic Fundamentals
Beyond technical patterns, BNB's fundamentals support long-term growth. A favorable regulatory environment under a potential Donald Trump administration could boost the crypto market, and a BNB ETF might emerge as early as 2025.
Additionally, BNB's network is thriving, with DEX trading volumes up 49% in the past week to $11.9 billion. The network has processed over $1.09 trillion in token transactions, and unique addresses have surpassed 489 million.
Finally, Binance’s regular BNB token burns, including the 29th burn in November, continue to reduce supply, driving value for holders.
