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Binance Coin (BNB) has experienced a notable decline, falling for four consecutive weeks and dropping by more than 20% from its peak in December. However, there are several key factors indicating that a significant rebound could be on the horizon, with the price potentially increasing by 80% or more.
Strong Fundamentals for BNB Chain
Despite the price dip, the BNB Chain’s fundamentals remain robust. Recent data from Nansen shows a 40% rise in the number of addresses on the BNB Chain in the last 30 days, reaching nearly 20 million. This places BNB Chain as the third-largest blockchain by active addresses, trailing behind Solana, Base, and Tron.
Additionally, BNB Chain’s transaction volume increased by 3.2% in the past month, surpassing 126 million transactions. This points to healthy network activity and continued growth. In the decentralized exchange (DEX) sector, BNB Chain is gaining ground on Ethereum. Over the past week, DEX protocols on BNB Chain processed $24 billion in tokens, just ahead of Ethereum’s $19 billion, with $80 billion processed in the last 30 days, compared to Ethereum’s $84 billion.
Another bullish signal is the network’s token burn mechanism. Over the last week, BNB burned 363 coins worth over $236,815. Additionally, the network plans to burn 1.6 million BNB tokens worth $1.01 billion this month as part of its quarterly auto-burn process.
Technicals Indicate a Potential Rebound
From a technical perspective, the BNB price is currently forming a cup and handle pattern on the weekly chart. This is considered one of the most bullish chart patterns, characterized by a rounded bottom followed by a handle. The price has remained above both the 50-week and 100-week moving averages, signaling that the bulls are still in control.
The cup’s depth suggests a potential target of $1,200, which would represent a near 90% increase from the current price. However, given that this pattern has formed over several weeks, the rebound may take time to fully unfold.
Despite recent price struggles, BNB’s strong network fundamentals, growth in the decentralized exchange space, and the ongoing token burn mechanism provide a solid foundation for a potential rebound. If the cup and handle pattern plays out as expected, the price could see significant gains, with targets pointing to around $1,200 in the medium term.
