The price of Binance Coin has been stabilizing at a significant resistance level, as recent upward trends indicate a potential loss of momentum.

On November 29, Binance Coin (BNB), the primary token of the BSC network, was valued at $655. It has surged by 223% from its lowest point in 2023 and recorded a 9% increase in November, lagging behind most other major cryptocurrencies.

BNB boasts robust fundamentals and technical indicators suggesting the possibility of additional gains in December. The BSC ecosystem has shown positive performance, with the total value locked in its DeFi sector increasing by 18% to reach $5.53 billion over the past month.

Similarly, trading volumes for cryptocurrencies on its DEX protocols, including PancakeSwap (CAKE) and Uniswap, exceeded $34 billion during this timeframe, with PancakeSwap accounting for nearly $30 billion.

Additionally, data indicates that the network continues to decrease coin circulation through burning initiatives. In the last week, 652 coins valued at $429,000 were burned. Altogether, the network has removed coins worth $160 million in an effort to lower the total supply from 144 million to 100 million, a strategy intended to mitigate inflation.

This ongoing burn process, coupled with rising network revenues, has significantly enhanced staking yields, which currently stands at 12.5%. This implies that a $100,000 investment in BNB could generate approximately $12,500 annually.

Technical Analysis Suggests BNB Price Could Reach $1,100

The weekly chart suggests that Binance Coin may have further upside potential in the upcoming weeks. A cup and handle pattern has been forming since October 2021, showing resistance at $665. This bullish configuration features a horizontal line, a rounded bottom, and subsequent consolidation or retracement.

The cup’s depth is approximately 70%. By applying the same measurement from the $665 resistance level, a breakout could lead the coin to soar to $1,130. For this prediction to materialize, BNB must break through key levels at $875, which represents the extreme overshoot of the Murrey Math Lines, in addition to the psychological barrier at $1,000.

The threshold for invalidating this outlook is set at $437, signifying the lower boundary of the trading range as indicated by the Murrey Math Lines tool.