Binance Coin (BNB) Price Prediction: Will the Bullish Breakout Continue?

The BNB price has crashed for five consecutive weeks despite the network having strong fundamentals. Binance Coin token fell to a low of $503 this week, its lowest level since September 2 last year. It is down by almost 30% from its highest level this year. So, is it a good buy?

The price of BNB has crashed for five consecutive weeks now, even as the network boasts strong fundamentals. This week, the Binance Coin token hit a low of $503, marking its lowest level since September 2 last year. It is down by almost 30% from its highest level this year. So, is BNB a good buy?

Solid fundamentals for Binance coin

Among cryptocurrencies, BNB coin boasts some of the strongest fundamentals. First, it was created by Binance, the world’s largest crypto exchange with over 100 million customers. Third-party data shows that Binance maintains a significant market share, handling over 34% of all crypto volume.

Each quarter, millions of BNB coins are incinerated. According to BNB Burb, 1.63 million tokens were burned in Q4 last year, valued at over $1 billion. This quarter, the website anticipates that 1.566 million tokens will be burned, to the tune of $1.08 billion.

Each week, Binance coins worth $200k are burned. In the last seven days, 415.3 BNB coins were incinerated, bringing the total real-time burns to about $140 million. The aim is to reduce the number of BNB tokens in circulation from over 144 million to 100 million, rendering it highly deflationary.

Thirdly, the BSC Chain is gaining market share in key sectors of the crypto industry. For instance, in the decentralized exchange (DEX) space, it has become the third-largest chain after Solana and Ethereum. Its protocols handled volume of $84 billion in the last 30 days, while the other two processed $264 billion and $92 billion, respectively.

BNB also has a DeFi total value locked (TVL) of over $5 billion and bridged volume of almost $18 billion. Its stablecoin volume has risen to $6.95 billion.

Moreover, token burns and rising network fees have led to an increase in its staking yield. It now yields about 4.76%, higher than Sui’s 2.54% and Cardano’s 2.66%.

BNB price weekly chart

The weekly chart indicates that the Binance Coin price is still largely bullish. It has formed a cup and handle pattern, which is considered to be one of the top bullish continuation signals. The ongoing consolidation is part of the formation of the handle section.

BNB coin has remained above the 50-week Exponential Moving Average (EMA) and the major S&R level of the Murrey Math Lines. It is also in the process of forming a hammer candlestick pattern, comprising of a long lower shadow and a small body.

Hence, we can expect a bullish breakout in the BNB price, with the next level to watch being the November 2024 high of $790, up by about 40% from the current level. A move above that level will indicate further gains, potentially to $1,000.