Binance Coin continued its strong performance this week, reaching an all-time high of $794.ย
Binance Coin (BNB) has done better than some large coins like Ethereum (ETH) and Bitcoin (BTC) over the last 12 months. It has gained 220%, compared to BTCโs 133% and ETHโs 71% rise in the same period. In response to an X post highlighting this performance, Changpeng Zhao noted that investors often focus on 24-hour performance, missing the broader long-term gains.
The BNB price momentum is being driven by its strong fundamentals and technicals. Fundamentally, the DeFi total value locked in the BSC ecosystem has jumped to almost $6 billion, making it the fourth-biggest chain after Ethereum, Solana, and Tron.
BSCโs protocols in the DEX industry have also seen a sharply in the past few months, helped by the ongoing crypto rally. It has handled tokens worth $9.91 billion in the last 30 days and $1.17 trillion cumulatively.
Additionally, the BNB Chain has been actively burning coins. The most recent quarterly burn removed 2.02 million coins from circulation. Binanceโs long-term goal is to reduce the total Binance Coin supply to 100 million coins.
The BNB price has also done well after Binance launched BFUSD, a stablecoin that promises a yield of almost 20%. These developments have created more utility for the Binance coin.
Another driver of BNBโs rally is the resolution of regulatory concerns. Changpeng Zhao, Binanceโs founder, recently completed his prison sentence in the United States, reducing some of the regulatory overhang affecting the coin.
BNB price has strong technicals
Meanwhile, Binance Coin has strong technicals that could push its price much higher than where it is today. On the weekly chart, the coin has formed a cup and handle pattern, a popular bullish sign. It has now moved above the upper side of this pattern, a sign that bulls have prevailed.ย
The distance between the upper and lower edges of the cup suggests a potential 70% rally. Applying this measurement from the breakout point indicates a possible target of $1,170.
The Murrey Math Lines tool also supports a bullish outlook, showing that BNB has moved above the โweak, stop & reverseโ level, suggesting it could advance to $875, the โextreme overshootโ level.
However, a drop below the key support level at $625, identified as the โstrong pivot reverseโ level, would invalidate the bullish outlook.
