BINANCE COIN PRICE ACTION SUGGESTS BEARISH PENNANT AHEAD OF FERMI HARD FORK
Binance Coin (BNB) has been trading around the $900 psychological level over the past several days. The price remains well below its all-time high of $1,375, highlighting the recent weakness in market momentum.
Fermi Hard Fork Marks Major Network Upgrade
BNB’s price has shown limited reaction despite several upcoming catalysts. The most significant near-term event is the Fermi hard fork, scheduled for January 14. The upgrade aims to improve network performance by reducing block times to 0.45 seconds.
Fermi will also deliver faster transaction finality, higher throughput, and smoother application performance. This marks the fourth hard fork on the BNB Smart Chain, following Maxwell, Pascal, and Lorentz.
Previous Upgrades Boosted Network Speed
Earlier upgrades successfully lowered block times as network usage increased. These improvements helped BNB Smart Chain compete more effectively with major rivals such as Solana and Ethereum.
Network growth remains strong. Data from Nansen shows active addresses rose 0.7% to 41.1 million, while total transactions reached 403 million over the past 30 days.
BNB Smart Chain Usage Continues to Expand
The network now averages 4.2 million daily active users and processed more than $43.9 billion in decentralized exchange (DEX) volume over the last month. Analysts expect this activity to continue growing in the near term.
Token Burn and ETF Speculation Add to Catalysts
Binance is also preparing for a major quarterly token burn, which will remove 1.37 million BNB valued at over $1.27 billion from circulation.
In addition, Grayscale is widely expected to file for a spot BNB ETF, following similar interest from VanEck, adding to speculation around institutional demand.
BITCOIN FLAT AT $90K AS CERTAIN ALTCOINS RALLY, BUT BROAD ALTCOIN SEASON REMAINS DELAYED
Binance Coin Technical Analysis Signals Caution
On the daily chart, BNB has declined sharply over recent months, falling from its October high of $1,375 to around $900.
The price remains between the 50% and 61.8% Fibonacci retracement levels and trades above both the 50-day and 200-day moving averages, which typically support a bullish outlook.
However, BNB has also formed a rising wedge pattern, defined by two converging trendlines. This structure is part of a broader bearish pennant formation, which often precedes downside breakouts.
Key Levels to Watch
If the bearish setup plays out, BNB could break lower toward the $788 support level, last seen on November 21. This would represent a decline of roughly 12% from current levels.
Conclusion
Binance Coin remains at a critical juncture as it trades near the $900 level ahead of the Fermi hard fork. While network fundamentals continue to strengthen—supported by rising user activity, growing DEX volumes, and an upcoming token burn—price action suggests caution in the near term. The formation of a bearish pennant indicates downside risk remains elevated unless bullish momentum returns. A confirmed breakdown could see BNB retest the $788 support zone, while a sustained move above resistance would be needed to shift the outlook back in favor of buyers.
