Top 4 Reasons Binance Coin Price Will Hit $1,000 This Year

Binance Coin price has moved sideways throughout the year despite having some of the best fundamentals in the cryptocurrency industry. This consolidation could calm the storm before an eventual surge from $655 to $1000 before the year ends.

Binance Coin Price Consolidation is Part of the Cup & Handle

Technicals suggest that the ongoing BNB price consolidation is part of a unique chart pattern called a cup-and-handle. The pattern includes three main components: a horizontal resistance linking two upper levels, a rounded bottom, and a handle-like consolidation.

Together, these elements form a recognizable chart formation often seen in technical analysis. In Binance Coin’s case, the upper side of this pattern is $660. On the other hand, the lower side of the rounded cup pattern is $185. This gives the cup’s depth at $475.

The recent Binance Coin price action, which started in January, is part of the handle section. In this case, the handle resembles a symmetrical triangle pattern, with its two lines converging.

In a symmetrical triangle, a bullish or bearish breakout happens when the two lines are about to converge.

The price target in a cup-and-handle pattern is established using two steps. First, one finds the cup’s depth, which, in this case, is $475. After this, one adds the same amount to the cup’s upper side, which gives it a target of $1,135.

The bullish breakout to this target will be confirmed if the BNB price surges above the psychological level of $1,000.

BSC to Burn BNB Tokens Worth $1 Billion

The other bullish catalyst for the BNB price is that it has become a highly deflationary crypto industry token. It achieves this by implementing two types of token burns.

It has a real-time burn that incinerates tokens based on the chain’s fees. This mechanism has burned tokens worth over $174 Million over time.

The most crucial token burn mechanism is the quarterly one. The network burns tokens based on the number of blocks produced in a quarter.

Data shows that the network will soon burn over $1 Billion tokens. This process will continue until circulating tokens fall from 140 million to 100 million.

Token burns are usually bullish because they compress the circulating supply and often boost the staking yield.

BNB Smart Chain is Doing Well in the DEX Industry

The other bullish catalyst for the Binance Coin price is that the BSC Chain dominates the DEX industry. DeFi Llama data showed that it has overtaken popular chains like Solana and Ethereum in terms of volume.

Its network, led by PancakeSwap, handled transactions worth over $6 Billion in volume on Friday. This figure was much higher than Solana’s $2 Billion, Ethereum’s $1.79 Billion, and Base’s $946 Million combined.

A similar trajectory occurred in the last 30 days, during which the network processed over $179 Billion in volume. This increase was bigger than Solana’s $61 Billion and Ethereum’s $56 Billion.

Rising Stablecoin Supply to Boost BNB Price

Another key bullish driver for Binance Coin is the growing influence of the BNB Chain. It has firmly established itself as a major force in the stablecoin sector.

Artemis data shows that the supply of stablecoin in the network has jumped to $10 Billion. In contrast, the number of stablecoin addresses in the network soared by 75% in the last 30 days to 12.6 million.

This increase led to an adjusted transaction volume of $334 Billion. It is a trend that may continue as stablecoins gain mainstream. All this has led to higher network revenue.

BNB Chain has become the fourth most profitable blockchain in cryptocurrency. It generated approximately $20 Million in fees over the last 12 months.

The ongoing Binance Coin price consolidation could be the calm before the storm. It is part of the formation of the handle section of the cup-and-handle, which normally leads to more gains.

It also has strong fundamentals like rising DEX volume, increased token burns, and growing market share in the stablecoin industry.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.