- BNB is currently trading at $30.37 after several days of sideways price action.
- Binance conducted the 13th quarterly burn, burning a total of 2,253,888 BNB, the highest ever in fiat terms.
Binance Coin was initial launched as an ERC-20 token before getting its own mainnet. The exchange started burning coins in October 2017 starting with only 986,000 coins. Since then, Binance has completed quarterly coin burns reducing the total supply of BNB by more than 10%.
BNB eying up $33.34
The first few BNB burns had a stronger immediate effect on the price of BNB, however, the more recent ones haven’t pushed the price of the digital asset directly. They are now viewed as a more long-term bullish indicator without pumping the value of the digital asset.
BNB/USD daily chart
Nonetheless, massive burns like the last one have a huge positive impact in the long-term. The price of BNB is currently way above the 50-SMA, 100-SMA, and 200-SMA. There are two clear resistance levels on the way up, the most recent one was established at $31.35 and the next is $33.34, the 2020-high.
BNB Age Consumed Chart
Santiment shows a massive spike in the age consumed of BNB, related to the burn of BNB, but not entirely just from that. This metric shows the number of tokens changing addresses keeping in mind the last time they moved. A large spike like the one currently usually indicates that a lot of tokens are moving after being idle for quite some time.
Considering the trading volume seems to be dropping on Binance, we could be on the verge of a massive price move. As long as the bulls can push BNB above $31.35, the digital asset can easily reach the 2020-high at $33.34 and potentially run higher.
BNB/USD 12-hour chart
On the other hand, it seems that the 12-hour chart is shifting in favor of the bears. BNB established a weak higher high at $31.97 compared to $31.79 followed by a lower high at $31.03. Bears are now trying to push the price below $29.57 to form a lower low and confirm a downtrend.
Additionally, the MACD flipped bearish on October 16 and it’s gaining strength. The next potential price target for the bears if $29.57 is broken would be $28.5 where the 100-SMA is currently established. The 50-SMA at $26.82, which coincides with a support level would be the next price target.
Key price points to look for
The recent BNB burn is a huge positive long-term indicator as Binance has burned more than 10% of the total supply of the digital asset. Bulls are facing one critical resistance level at $31.35. If broken, BNB can easily reach $33.34 and potentially run higher.
On the flip side, it seems that bears are taking control of the 12-hour chart. The MACD is bearish and a breakout below $29.57 would most likely drive the price of BNB down to $28.5 and as low as $26.82, a strong support level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Dogecoin Price Forecast: Bulls deploy $355M in DOGE longs amid Gensler exit confirmation
Dogecoin price crossed $0.40 on Friday, after a weeklong consolidation that saw DOGE tumble 13% from last week’s peak. Derivative market reports link the DOGE rally to Gary Gensler’s imminent exit.
Crypto Today: XRP gains 10%, Cardano, XRP, and DOGE price rallies, delay Bitcoin’s $100K breakout
The global cryptocurrency sector pulled $230 million capital inflows on Friday, as markets reacted positively to news of SEC Chair Gary Gensler’s imminent exit.
Cardano Price Forecast: ADA could rally by another 30% as on-chain data signals bullish sentiment
Cardano (ADA) surged 24% to $0.98 on Friday following rising weekly active addresses, increased open interest and spot buying pressure.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.