BNB price outperforms Ethereum and Bitcoin; CZ answers

Binance Coin continued its strong performance this week, reaching an all-time high of $794.

Binance Coin (BNB) has outperformed some major coins such as Ethereum (ETH) and Bitcoin (BTC) over the past 12 months. It is up 220% compared to BTC’s 133% rise and ETH’s 71% rise over the same period. In response to an X post highlighting this performance, Changpeng Zhao noted that investors often focus on 24-hour performance and miss the broader long-term gains.

BNB’s price momentum is driven by its strong fundamentals and technicals. Fundamentally, the total DeFi value locked in the BSC ecosystem has risen to almost $6 billion, making it the fourth largest chain after Ethereum, Solana and Tron.

BSC protocols in the DEX industry have also seen a strong upswing in recent months, supported by the ongoing crypto rally. In the last 30 days, $9.91 billion worth of tokens were transacted, for a total of $1.17 trillion.

Additionally, the BNB chain has been actively burning coins. The most recent quarterly burn removed 2.02 million coins from circulation. Binance’s long-term goal is to reduce the total Binance Coin supply to 100 million coins.

BNB price has also performed well after Binance launched BFUSD, a stablecoin that promises returns of almost 20%. These developments have made the Binance coin even more useful.

Another driver of the BNB rally is the resolution of regulatory concerns. Changpeng Zhao, the founder of Binance, recently completed his prison sentence in the United States, reducing some of the regulatory overhang affecting the coin.

BNB price has strong technicals

Meanwhile, Binance Coin has strong technicals that could push its price well beyond where it is today. On the weekly chart, the coin has formed a cup-handle pattern, a popular bullish sign. It has now moved above the upper side of this pattern, a sign that the bulls have gained the upper hand.

The distance between the top and bottom of the cup suggests a potential 70 percent rally. Applying this measurement from the breakout point suggests a possible target of $1,170.

The Murrey Math Lines tool also supports a bullish outlook and shows that BNB has moved above the “weak, stop and reversal” level, suggesting that it could rise to $875, the “ extreme level of exceedance”.

However, a break below the key support level of $625, referred to as a “strong pivot-reverse” level, would invalidate the bullish outlook.