- Binance Foundation removed nearly 2 million BNB tokens from circulation, aiming to decrease total supply.
- Despite the burn, BNB’s price remained stable, later surging 110% and showing strong performance.
- Technical indicators suggest the token may challenge $635 resistance, but a reversal could test support levels at $569.5 and $506.5.
The Binance Foundation recently completed its 27th quarterly BNB token burn on the BNB Chain, marking another significant milestone in the platform’s ongoing efforts to reduce the total supply of BNB tokens.
During this process, the platform permanently removed 1,944,452.51 BNB tokens, valued at approximately $1.17 billion at the time of the burn, from circulation.
The Binance burn is a quarterly event that is carried out automatically using the Auto-Burn formula. The ultimate goal of this process is to gradually decrease the total supply of BNB tokens until it reaches 100 million. At present, the total supply stands at 149,532,856 BNB tokens, showcasing the significant progress made towards achieving this target.
Binance Burn Impact on BNB Price
Following the token burn, the BNB coin price remained neutral, trading in a narrow band of $278 to $345.5 until mid-February. However, as market volatility escalated, the altcoin surged 110% before being rejected at $635.
Since then, the price has been moving in a tight range of $506.5 to $635. Despite recent consolidation, BNB has performed well across multiple timeframes.
BNB’s value has increased by 11.43% in the last seven days, and 10.12% in the last thirty days. Furthermore, the token’s Year-to-Date (YTD) performance is an incredible 94.58%, implying significant bullish price action for the Binance coin price in the next months.
Technical indicators also reinforce the positive outlook for Binance coin. The Moving Average Convergence Divergence (MACD) indicator displays a rising green histogram, indicating growing purchasing pressure in the cryptocurrency market. Furthermore, the averages show bullish convergence, which reinforces the favorable prognosis for the BNB price in the near future.
Will The Coin Price Rise Back Up?
If the positive momentum continues, the BNB coin price is projected to challenge its resistance at $635 over the weekend. If the market manages to keep the price at that level, the Binance token may try to challenge its previous all-time high (ATH) of $690.9.
However, if a trend reversal occurs, the Binance token may lose momentum and fall to test its support level of $569.5. In the event that the bears continue to dominate the market, the Binance token could potentially plunge further and prepare to test its lower support level of $506.5 in the coming weeks.
Source: https://thenewscrypto.com/binance-completes-27th-quarterly-token-burn-can-bnb-hit-800/