Binance Coin’s price moved sideways on Monday as traders waited for the upcoming Fermi hard fork.
Summary
- Binance Coin’s price remained unchanged at $900 on Monday.
- The BSC Chain is launching the Fermi hard fork this week.
- Technical analysis suggests that the token may pull back soon.
The Binance Coin (BNB) token remained stuck at the psychological point of $900, wherever it has been for the past few days. This price is much lower than the all-time high of $1,375.
The BNB price has fallen despite some major catalysts. The first major catalyst will occur on January 14, when it will trigger the Fermi hard fork. This hard fork aims to improve its performance, with the block time dropping to 0.45 seconds.
Fermi will also introduce faster finality as throughput increases and app performance becomes smoother. It is the fourth hard fork in the BSC Chain, after Maxwell, Pascal and Lorentz.
The other three upgrades helped reduce block times as usage increased. This increased speed allowed it to compete more effectively with top competitors like Solana and Ethereum.
The Fermi hard fork comes as the BSC network’s growth continues. For example, data collected by Nansen indicates that active addresses increased 0.7% to 41.1 million, while the number of transactions in the last 30 days increased to 403 million.
The network has an average of 4.2 million daily active users. It also processed more than $43.9 billion in DEX volumes over the past 30 days, a trend that will continue to grow in the near term.
Binance Coin will also be conducting a major token burn in the coming weeks. It will burn 1.37 million tokens worth more than $1.276 billion as part of the quarterly auto-burn. Additionally, Grayscale is expected to soon file for a spot BNB ETF, alongside VanEck.
Technical analysis of the Binance Coin price
The daily chart shows that BNB price has crashed in recent months. It has crashed from a high of $1,375 in October to the current $900.
The coin remains between 50% and 61.8% Fibonacci Retracement levels. It has risen above the 50 and 200 day moving averages, which is a bullish sign.
However, it has formed a rising wedge pattern, characterized by two converging trend lines. This wedge is also part of the bearish pennant pattern.
Therefore, the coin is likely to see a bearish breakout, with the next target at the $788 support level, which was the November 21 low. This target is ~12% below current levels.
#Binance #Coin #price #forms #bearish #pennant #ahead #Fermi #hard #fork