BNB Price Eyes Rally as Double-Bottom Aligns With Token Burn, Transactions Surge

The BNB price remains under pressure below the important support at $1,000. It has crashed by nearly 32% from the year-to-date high, mirroring the performance of other tokens. Still, its double-bottom pattern, coupled with its rising token burn and transaction count points to more upside in the near term.

BNB Price Double-Bottom Points to a Rebound

The daily timeframe chart shows that the BNB price has crashed from the year-to-date high of $1,375 in October to a low of $890 as the crypto market crash happened.

On the positive side, there are signs that the token is just going through a normal pullback that will lead to more upside over time. For one, the coin has remained above the 200-day Exponential Moving Average (EMA). This moving average has provided it with robust support since June this year.

The other important positive is that the Binance Coin price has formed a double-bottom pattern at $890, its lowest level on October 10 and November 5. This pattern’s neckline is at $1,375, its highest level on record. It is one of the most popular bullish reversal signs in technical analysis.

Most notably, the double-bottom pattern happened slightly above the 61.8 % Fibonacci Retracement level, where most rebounds happen.

Therefore, the most likely Binance Coin price forecast is bullish, with the initial target being at the psychological level at $1,000. A move above this price will raise the odds of it moving to the all-time high. 

The bearish BNB price forecast will become invalid if it drops below the double-bottom point at $890. A move below that level will point to more downside, potentially to $800.

BSC Burn Rate, Soaring Fees, and Transaction Count

The BNB price has some notable catalysts that may push it higher in the coming weeks. One of them is that the Securities and Exchange Commission will be comfortable to approve the filed BNB ETFs, a move that will lead to more demand from American investors.

The other notable catalyst is that BSC has become one of the fastest-growing players in the layer-1 and layer-2 industries. This trend may continue if banks embrace its technology as CZ has recommended.

According to Nansen, the network had over 592 million transactions in the last 30 days, a 137% increase. This makes it faster than its other top chains like Solana, Ethereum, and Tron.

Most importantly, this surge in transactions has led to more fees, which jumped by 140% to $65 million. BNB network burns most of its fees, reducing its circulating tokens. It burned tokens worth almost $500,000 in the last seven days.

Additionally, the quarterly burn rate is expected to rise a bit. It is estimated to burn tokens worth over $1.2 billion this quarter, followed by $1.39 billion in the following one. Burn rates may boost a token price by reducing those in circulation.