Binance Coin price retreated for four consecutive weeks as the broader altcoin market lost momentum.
Binance Coin (BNB) dropped to $645.05, down by more than 20% from its highest level in December last year.
BNB Chain has strong fundamentals
The BNB price retreated even after the network’s fundamentals remained strong in January. Nansen data shows that the number of addresses on the BNB Chain rose by 40% in the last 30 days to almost 20 million. This makes it the third-biggest chain in this metric after Solana (SOL), Base, and Tron.
BNB Chain’s transactions jumped by 3.2% in the last 30 days to over 126 million, a sign that the network is doing well.
More data shows that the network is doing well in the decentralized exchange industry, where it is closing the gap with Ethereum. DEX protocols on BNB Chain handled over $24 billion tokens in the last 7 days, while Ethereum processed $19 billion. They handled $80 billion in the last 30 days, slightly lower than Ethereum’s $84 billion.
The other bullish catalyst for the BNB price is the substantial number of tokens burned each day and quarter. In the last seven days, BNB incinerated 363 coins worth over $236,815 as part of the real-time burn, which burns gas fees in the ecosystem.
The network will burn 1.6 million BNB tokens worth $1.01 billion this month. These tokens are part of its quarterly auto-burn mechanism, based on the BNB price and the number of coins burned each quarter.
Technicals suggest BNB price may rebound
The weekly chart shows that the BNB price is in the process of forming the handle section of the cup and handle pattern. C&H is a popular pattern comprised of a rounded bottom and a handle, and is one of the most bullish patterns in the market.
BNB price has remained above the 50-week and 100-week moving averages, a sign that bulls are in the market.
The depth of the cup is about 78%. Measuring the same distance from the top of the cup provides a price target of $1,200, up by about 90% from the current level. The rebound to that target will likely take time since this pattern has formed on the weekly chart.
