Binance Coin price forms a bearish pennant ahead of the Fermi hard fork
Binance Coin price moved sideways on Monday as traders waited for the upcoming Fermi hard fork.
- Binance Coin price remained unchanged at $900 on Monday.
- The BSC Chain will launch the Fermi hard fork this week.
- Technical analysis suggests that the token may retreat soon.
Binance Coin (BNB) token was stuck at the psychological point of $900, where it has been in the past few days. This price is much lower than the all-time high of $1,375.
BNB price has wavered despite having some major catalysts. The first key catalyst will happen on January 14 when it will activate the Fermi hard fork. This hard fork aims to improve its performance, with its block time falling to 0.45 seconds.
Fermi will also introduce faster finality as its throughput increases and its smoother app performance. It is the fourth hard fork in the BSC Chain after Maxwell, Pascal, and Lorentz.
The other three upgrades helped to lower its block times as its usage jumped. This higher speed enabled it to compete more effectively with top competitors such as Solana and Ethereum.Â
The Fermi hard fork comes as BSC network growth continues. For example, data compiled by Nansen indicate that active addresses increased by 0.7% to 41.1 million, while transactions rose to 403 million over the last 30 days.Â
The network is averaging 4.2 million daily active users. It also processed over $43.9 billion in DEX volume in the last 30 days, a trend that will continue to grow in the near term.Â
Binance Coin will also execute a big token burn in the coming weeks. It will burn 1.37 million tokens worth over $1.276 billion as part of the quarterly auto-burn. Additionally, Grayscale is expected to file for a spot BNB ETF soon, joining VanEck.
Binance Coin price technical analysis
The daily chart shows that the BNB price has crashed in the past few months. It has crashed from a high of $1,375 in October to the current $900.
The coin remains between the 50% and 61.8% Fibonacci Retracement levels. It has moved above the 50-day and 200-day moving averages, which is a bullish sign.
However, it has formed a rising wedge pattern, characterized by two converging trendlines. This wedge is also part of the bearish pennant pattern.Â
Therefore, the coin will likely have a bearish breakout, with the next target at the support level of $788, its lowest point on Nov. 21. This target is ~12% below the current level.
