Binance Coin (BNB) Price Prediction: $1,100 Target Reachable as Its Ecosystem Shines

Binance Coin price continued to consolidate at a key resistance level as its recent rally showed signs of losing momentum.

Binance Coin (BNB) price showed signs of losing momentum in its recent rally, consolidating at a key resistance level. However, strong fundamentals and technical indicators suggest potential further gains in December.

The BNB coin was trading at $655 on Nov. 29. It has risen by 223% from its lowest level in 2023 and by 9% in November, showing resilience amid a broader market uptrend. The coin, however, underperformed most major cryptocurrencies during the period.

The coin’s strong fundamentals are highlighted by the performance of the Binance Smart Chain (BSC) network. Data shows that the total value locked (TVL) in the BSC DeFi ecosystem increased by 18% to $5.53 billion over the past 30 days.

Meanwhile, the volume of cryptocurrencies traded on its decentralized exchange (DEX) protocols, such as PancakeSwap (CAKE) and Uniswap, rose to over $34 billion in the same period. Of this volume, PancakeSwap contributed nearly $30 billion.

Furthermore, the network continues to reduce coin circulation through burning. According to data, 652 coins were burned over the last seven days, amounting to $429,000 in value. In total, the network has burned coins worth $160 million.

The burning of coins and rising network revenue have boosted the staking yield significantly. According to current rates, a $100,000 investment in BNB could yield approximately $12,500 annually.

From a technical perspective, the weekly chart shows Binance Coin forming a cup and handle pattern since October 2021. The resistance at $665 is a key level to watch. 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.

On the other hand, the invalidation point for this outlook is $437, which marks the bottom of the trading range based on the Murrey Math Lines tool.