Can Binance Coin (BNB) Reach $1,100 as Staking Yield Surges to 12 Percentage?

Binance Coin (BNB) has shown signs of consolidation at a key resistance level, with its recent rally losing some momentum. As of November 29, BNB was trading at $655, having surged 223% from its 2023 low and increasing by 9% in November, though it has underperformed compared to many other major cryptocurrencies.

Despite this, BNB retains strong fundamentals and technical indicators, suggesting that further gains could be on the horizon in December. The Binance Smart Chain (BSC) ecosystem continues to perform well, with its decentralized finance (DeFi) sector experiencing an 18% growth, reaching a total value locked (TVL) of $5.53 billion over the last 30 days. Additionally, the trading volume on its decentralized exchanges (DEXs), such as PancakeSwap and Uniswap, has surged to over $34 billion, with PancakeSwap contributing nearly $30 billion of this volume.

The Impact of Coin Burning and Staking Yield

A key factor driving BNB’s bullish outlook is the network’s ongoing coin burn program. In the last week alone, 652 BNB tokens, worth $429,000, were burned. To date, Binance has eliminated a total of $160 million worth of BNB, working towards reducing the total supply from 144 million to 100 million. This deflationary measure aims to curb inflation, which could support the price of BNB moving forward.

Furthermore, the rising network revenue has significantly boosted BNB’s staking yield, which currently stands at an attractive 12.5%. For investors, this means that a $100,000 stake in BNB could yield roughly $12,500 annually. The increased staking rewards provide an added incentive for long-term holders, contributing to further demand for the coin.

Technical Outlook: Can BNB Reach $1,100?

From a technical perspective, BNB’s price chart indicates that a breakout could be on the cards in the coming weeks. The cryptocurrency has formed a bullish "cup and handle" pattern since October 2021, with resistance at $665. This pattern, characterized by a rounded bottom followed by consolidation or retracement, suggests that BNB could continue its upward trajectory.

The depth of the cup in this pattern is approximately 70%, and when applied to the $665 resistance level, it points to a potential price target of $1,130 in the event of a breakout. However, for this to happen, BNB must first clear crucial resistance levels at $875, a key point according to the Murrey Math Lines tool, as well as the psychological barrier of $1,000.

Key Support and Invalidation Levels

While the outlook for BNB remains bullish, the invalidation point for this scenario is $437, a level identified by the Murrey Math Lines as the bottom of the current trading range. A drop below this threshold could indicate a reversal in the bullish sentiment.

Conclusion

With strong fundamentals, a robust DeFi ecosystem, and an enticing staking yield, BNB has the potential to rise further in the near future. If the coin can break through its critical resistance levels, a price of $1,100 or higher is certainly within reach. However, as always, investors should remain cautious and keep an eye on key support levels to gauge the sustainability of the bullish trend.