Binance Coin (BNB) has seen a significant price increase, up by 240% from its year-to-date low to $616. This surge has led to a market cap of over $88 billion, with predictions of a potential rise to $1,200 in the coming months. The coin has formed a cup and handle pattern on the weekly chart, indicating a bullish trend. The cup and handle pattern is characterized by a rounded bottom and consolidation or a pullback at the upper side, with BNB forming this pattern over the past year.
The cup section of the pattern formed after a rally to $665, followed by a pullback to $200, before BNB retested the previous high earlier this year. The handle section has been forming since then, with a potential target of $1,200 established by measuring the distance between the upper and lower sides of the cup. BNB has remained above the 59-week moving average and is approaching the strong pivot level on the Murrey Math Lines tool, indicating further potential gains. The MVRV indicator for Binance Coin has also increased to 2.7, suggesting more room for growth in the coming months.
In addition to the technical analysis, BNB also has bullish fundamentals that could support its price increase. With a friendly regulatory environment expected under the upcoming Donald Trump administration and the potential for a BNB ETF in 2025, Binance Coin has strong support for its long-term growth. The network’s decentralized exchange (DEX) volume has seen a significant increase, with over $1.09 trillion worth of tokens being exchanged since its inception. Furthermore, token burns have continued to increase the value of remaining coins, with the 29th burn taking place earlier this month.
To reach the target of $1,200, BNB will need to clear the upper side of the cup and handle pattern and rise above the key resistance level at $1,000. The key level to watch for a potential reversal will be at $402, the lower side of the handle section. A drop below this level could invalidate the bullish view and lead to further losses. However, with the current market conditions and positive technical and fundamental factors, Binance Coin remains well-positioned for potential growth in the cryptocurrency market.
