The BNB price has suffered a harsh reversal after peaking at a record high of $793 last week. It has retreated to $713 as the recent crypto bull run took a breather. It remains about 80% above its August highs.
BNB price has strong technicals, pointing to more gains
The weekly chart shows that the Binance Coin price has more room to go in the longer term.
It has formed a bigger cup and handle pattern whose upper side is at $668, its highest level in May and November 2021 and June this year.
The coin has then formed a smaller C&H pattern whose upper side is at $721, and whose depth is at $400.
The depth of the initial cup is about 75%. Therefore, if we measure the same distance from the key point at $667, we get the next target at $1,165. For that rally to happen, the Binance Coin price will need to rise above the extreme overshoot level at $875 and the psychological point at $1,000.
If the target is correct, it means that the BNB coin price will rise by about 60% from the current level. The stop-loss of this trade will be at the major S&R pivot point of the Murrey Math Lines at $500.
BNB price chart by TradingView
Read more: BNB Price Eyes $700 After Breaking Consolidation Patterns
Binance Coin is supported by strong fundamentals
The bullish case for the BNB price is supported by its strong fundamentals. The first key fundamental is that the number of BNB coins in circulation will continue to fall in the next few years. Its total supply stands at 144 million, a figure that will eventually drop to 100 million.
Data shows that the real-time burn in the last seven days was valued at almost $500k. The number of coins burned in the third quarter stood at over 1.7 million coins, while those to be burned this quarter are 1.65 million. Token burns reduce the number of coins, making the remaining ones more valuable.
Meanwhile, BSC is one of the biggest players in the blockchain industry. It has over 822 DeFi dApps, which have a combined total value locked (TVL) of over $5.7 billion and over 1 million active addresses. The BSC Chain also has $16.6 billion in bridged assets.
DeX protocols in BNB are some of the most active in the crypto industry. They handled coins worth $11.35 billion in the last seven days, a 30% increase from the same period. The biggest of these DEX networks are Pancakeswap, Thena, Uniswap, Swaap, and Woofi. This volume will likely continue rising as the crypto bull run gains momentum in the near term.
