Binance Coin, the fifth-largest cryptocurrency by market cap, has managed to largely avoid the ongoing cryptocurrency collapse and is hovering near all-time highs.

Binance Coin (BNB BankIt traded at $695 on Friday, just 12% below the record high it reached in December. In comparison, Bitcoin (Bitcoin) by 15%, while other large value cryptocurrencies such as Solana (Sol) and others, all of which decreased by more than 20%.

BNB's resilience is primarily due to its low correlation with Bitcoin and other cryptocurrencies. According to data from Blockchain CenterBNB's 90-day correlation coefficient with Bitcoin is 0.65, which is lower than many other major currencies.

BNB price movement is also affected by the quarterly token burn, which reduces the supply of coins in circulation. Binance uses two types of burn mechanisms: real-time burn and quarterly burn.

Burns occur in real time as a fixed percentage of the gas fees collected are burned in each block. This burn mechanism resulted in $171 million worth of BNB tokens being burned.

The quarterly burn depends on the number of blocks produced in each quarter. In the fourth quarter, 1.63 million BNB tokens worth $1.02 billion were burned. According to data from Burn BNBThe upcoming quarterly auto-burn is expected to burn an additional 1.55 million tokens worth about $1.09 billion.

The BSC ecosystem has also continued to perform well in the past few months. For example, the total value of the locked ecosystem (TVL) has I slept by 3% in the last 30 days, while Ethereum, Solana and Tron lost more than 8% in this period.

Decentralized exchange protocols within the BSC ecosystem have processed more than $9.75 billion worth of tokens in the past seven days.

BNB price chart point

Technical indicators suggest that BNB has more upside potential in the long term. The token remains above its short-term and long-term moving averages. In addition, the RSI and MACD - two popular oscillators - continued to rise, indicating upward momentum.

Binance Coin also formed a cup and handle chart pattern, which is a popular bullish continuation signal in technical analysis. This style consists of two parts: the cup and the handle. In the case of BNB, the cup was formed between May 2021 and July 2022, and the handle section is currently underway.

If the pattern completes, BNB could see a price rise of more than 70%, potentially rising to over $1,180 in the long term.