Key Insights
- BNB’s double-bottom near $890 and sustained 200-day EMA support indicate strong technical recovery potential.
- BSC network activity surged 137% in 30 days, surpassing Ethereum and Solana in transaction count.
- Binance expects to burn over $1.2 billion in BNB this quarter, reducing circulating supply and supporting price stability.
Binance Coin (BNB) remains under notable selling pressure, trading below the critical support level of $1,000 after a 32% slide from its yearly high. Despite the downturn, the digital asset continues to show resilience as technical indicators point to a possible rebound.
BNB’s daily chart reveals a sharp drop from its October peak of $1,375 to a low of $890 following the recent market correction. However, the token remains positioned above the 200-day Exponential Moving Average, a long-standing support since June.
Significantly, BNB has formed a double-bottom pattern near $890, mirroring lows from October 10 and November 5. The neckline of this pattern sits around $1,375, suggesting a potential bullish reversal. Moreover, this formation emerged just above the 61.8% Fibonacci retracement level, an area often associated with price rebounds.
Upside Targets and Key Risk Levels
A move beyond the $1,000 mark could signal renewed upward momentum for BNB, potentially pushing it closer to its all-time high. Conversely, a decline below $890 would invalidate the bullish setup, signaling room for further downside toward $800.
On-chain data supports a positive outlook. The Binance Smart Chain (BSC) recorded over 592 million transactions in the past 30 days, marking a 137% surge, according to analytics firm Nansen. This rapid growth places BSC ahead of rival blockchains such as Ethereum, Solana, and Tron.
Consequently, fees collected on the network soared by 140 percent to reach $65 million. The majority of these fees are burned, effectively reducing BNB’s circulating supply and potentially supporting its value. In the past week alone, BNB tokens worth about $500,000 were removed from circulation.
Rising Burn Rate Adds to Bullish Outlook
Additionally, Binance’s quarterly burn program is projected to eliminate over $1.2 billion worth of tokens this quarter and as much as $1.39 billion in the next. This consistent reduction in supply, coupled with sustained network growth, continues to position BNB as one of the most active assets in the broader crypto ecosystem.
