The BNB price was largely unchanged this week as it missed the recent crypto market rally. Binance Coin was trading at $655 on Saturday, inside a range it has remained in for the past few months. However, as our analysis shows, there is a likelihood that this consolidation is the calm before the storm ahead of a major comeback in the next few months. BNB price technical analysis The weekly chart shows that the Binance Coin price has remained in a consolidation phase in the past few months. It has been stuck between the support and resistance levels at $495 and $750 since March last year. This consolidation has been by design, as the coin is in the process of forming the handle section of the cup-and-handle pattern . Historically, this pattern has been one of the most bullish ones in the market. The pattern starts when an asset in a strong bull run finds an initial resistance and starts to retreat gradually. Eventually, the asset forms a rounded-bottom pattern, and starts rising again and retests the first resistance level, completing the cup section. The other section is known as the handle, and is normally involves a consolidation or a pullback. This consolidation may take a few days, or over a year. Ideally, if the pattern forms on the weekly or monthly chart, there is a likelihood that it will take time to complete. The price target in the C&H pattern is identified by first measuring the depth of the cup, and then measuring the same distance from the upper side. In the BNB case, the depth stands at 70%. Measuring the same distance from $660 brings the target at $1122. The initial BNB price target to watch will be the December high of $748, followed by the psychological level at $1,000. A move above that level will point to more gains, potentially to the target point at $1,122. The caveat to this BNB price prediction is that, as mentioned above, it is based on the weekly chart, meaning that its target may take time to work out. A drop below the support at $495 will invalidate the bullish outlook. BNB price chart | Source: TradingView Read more: Bitcoin price prediction: why the BTC surge may be just beginning Top catalysts for the Binance Coin price The BNB price has numerous catalysts that may push it much higher in the coming months. First, it is one of the most deflationary tokens in the crypto industry. It achieves this through its two token burns. The first burn comes from the regular fees that are generated from the BSC Chain. This approach normally burns about 750 BNB tokens, currently valued at almost $500k a week, and has incinerated tokens worth $171 million since its beginning. The other approach is a quarterly one and is based on the BNB price and the blocks generated in the quarter. This approach burns tokens worth over $1 billion a quarter, making it a highly deflationary chain. Further, BSC Chain is positioning itself as the best alternative to Solana and Ethereum. Solana is known for congestion, while Ethereum has high fees. BSC is doing this through regular updates. It has already implemented the Pascal and Lorentz upgrades, and are now gearing to the upcoming Maxwell upgrade that will reduce the block time to 0.75%. The BNB price will benefit from the ongoing staking inflow, a sign that investors are optimistic on it. Investors have added tokens worth $90 million in the last 30 days. Further, the BNB price will benefit if the SEC approves an ETF that was filed by VanEck, a top asset manager in the United States. Read more: 4 reasons the Binance BNB price will surge to $1000 soon The post BNB price analysis: calm before the storm for Binance Coin appeared first on Invezz
