The price of Binance Coin has experienced a rise over three consecutive days, with four significant factors potentially propelling it beyond $1,100 soon.
Binance Coin (BNB) reached a peak of $610 on Thursday, marking a 20% increase from this week’s lowest point. While it is still approximately 26% below its peak from December last year, it has outperformed many other altcoins during this period.
Firstly, the price of BNB may see an uptick ahead of and following the Pascal hard fork. This upgrade is crucial for the BNB Smart Chain (BSC) as it will enhance the network with new features. These enhancements will include improved EVM compatibility, smart contract wallets, gas abstraction, batch transactions, and greater flexibility for developers.
The Pascal upgrade is one of three planned enhancements aimed at refining the BNB Chain network by boosting transaction speeds.
Secondly, the BNB price could receive a boost from speculation surrounding a potential investment by the Trump family in Binance US. Such an investment would likely ease the re-establishment of its operations in the U.S., though it remains uncertain if the deal will proceed after Changpeng Zhao dismissed the rumors.
Thirdly, BNB may benefit from the BSC’s continued market share growth compared to established networks like Ethereum (ETH) and Solana (SOL). The network is currently running a promotion that allocates $4.4 million in ongoing liquidity to decentralized applications within the ecosystem to foster their expansion.
The BNB price has formed a C&H pattern
A fourth catalyst that may drive the price of Binance Coin higher is the formation of a cup and handle pattern. This pattern is considered one of the most favorable in the market, comprising a rounded bottom, horizontal resistance, and a phase of consolidation. Currently, BNB is forming the handle portion, suggesting an impending rebound.
The coin has maintained its position above the 50-week and 100-week moving averages, indicating that bull sentiment is prevailing.
The C&H pattern carries a depth of roughly 74%. If we project that distance from the upper edge of the cup, it sets a target at $1,160. Conversely, a decline below the support level at $500 would negate the bullish outlook.