Could BNB Reach $1,100 with a 12% Staking Return?
Binance Coin’s price is currently stabilizing at a key resistance level, as recent trends suggest a possible dip in momentum for its upward movement.
As of November 29, the Binance Coin (BNB), which serves as the native token for the BSC network, was valued at $655. This marks an impressive increase of 223% from its lowest point in 2023, alongside a 9% rise in November, although it has underperformed compared to several leading cryptocurrencies.
Strong fundamentals and technical indicators indicate that BNB might see further price increases in December. The BSC ecosystem is flourishing, with the total value locked in its DeFi sector climbing by 18% to reach $5.53 billion over the past 30 days.
Furthermore, the trading volume for cryptocurrencies on its decentralized exchange (DEX) platforms, including PancakeSwap (CAKE) and Uniswap, surpassed $34 billion during the same period, with PancakeSwap contributing nearly $30 billion to this total.
Recent statistics reveal that the network is actively reducing coin supply through token burns. In the last week, 652 coins valued at $429,000 were burned. To date, the network has eliminated coins worth $160 million, aiming to decrease the total supply from 144 million to 100 million, a strategy aimed at combatting inflation concerns.
This ongoing burning initiative, coupled with increasing network revenue, has markedly improved the staking yield, currently at 12.5%. This means that a $100,000 investment in BNB could yield about $12,500 per year.
Technical Analysis Suggests $1,100 is Achievable for BNB
The weekly chart indicates that Binance Coin has the potential for additional gains in the weeks ahead. It has formed a cup and handle pattern since October 2021, with a resistance level at $665. This bullish formation consists of a horizontal line, a rounded bottom, and phases of consolidation or retracement.
The depth of this cup is approximately 70%. By applying the same measurement starting from the $665 resistance level, it’s suggested that the coin could reach around $1,130 following a breakout. To realize this target, BNB must first navigate significant resistance levels at $875, which represents a considerable overshoot according to the Murrey Math Lines, and the psychological barrier of $1,000.
The invalidation point for this forecast is positioned at $437, which signifies the lower boundary of the trading range per the Murrey Math Lines tool.
