Binance Coin Price Targets $1,500 Ahead of $1.2 Billion Token Burn

Binance Coin price has been in a strong bull run this year and is now hovering near its all-time high of $1,087. BNB token was trading at $1,055 on Thursday, up by 110% from the year-to-date low.

This rally may continue to $1,500 in October as the network prepares to burn tokens worth over $1.2 billion and as its key network metrics jump.

Binance Coin Price to Benefit From the Upcoming Token Burn

The BNB price rally may accelerate as the network prepares for a major token burn. Data compiled by BNBBurn shows that the network will remove 1.44 billion tokens from circulation in the coming week. These tokens are now valued at over $1.2 billion.

The network will then incinerate 1.31 billion tokens worth $1.33 billion when the fourth quarter ends. These token burns are part of the quarterly process that is based on the price of BNB and the number of blocks that are produced.

More BNB tokens are usually burned using a real-time burning mechanism that incinerates part of the network fee. This approach has now burned over 270,512 tokens worth $285,012.

These token burns are part of the strategy to make the BNB Smart Chain one of the most deflationary tokens in the crypto industry. Its goal is to reduce the circulating supply from the current 139.1 million to 100 million eventually.

BSC Network Statistics are Soaring

Another potential catalyst that will push the Binance Coin to $1,500 this month is that its network is seeing strong growth. Data compiled by Nansen shows that BNB Chain is one of the most active chains in the crypto market.

The number of active addresses on the network jumped by 7% in the last 30 days to over 36.7 million. This growth ranks it second only to Solana, which had over 62 million accounts.

Another metric that demonstrates its growing dominance in the crypto industry is the number of transactions. They have jumped by 62% in the last 30 days to 404 million. Like the number of users, this figure is second only to Solana, which had over 1.815 billion transactions.

The amount of fees made by the BSC Chain jumped by over 103% in the last 30 days to over 22 million.

One major reason for this is that the network is gaining market share in the stablecoin industry. According to Artemis Analytics, the amount of stablecoins on the BNB Chain has jumped by 14% in the last 30 days to $12 billion, while addresses soared to 11.1 million.

BNB Price Technical Analysis

The weekly timeframe chart shows that the BNB price has been in a strong bull run this year. It jumped from a low of $508 in April to a record high of $1,085.

One major milestone during this rally was the move above the key resistance level at $795, its highest point in December last year. Rising above that level invalidated the double-top chart pattern, a common bearish reversal sign.

The coin now remains above the 50-week and 100-week Exponential Moving Average (EMA). Moving above these averages is a sign that bulls remain in control.

The other notable bullish catalyst is that the Average Directional Index (ADX) rose to 34, the highest point since August 5. An ADX indicator pointing upwards is a sign that it is gaining momentum.

Therefore, these technicals suggest that the coin will benefit from the current Uptober rally and hit the resistance at $1,500. Such a move will signal a 35% jump from the current level.

However, the coin may also form a break-and-retest pattern, which is a common continuation sign. To do this, the Binance Coin price may drop and retest the support at $794 and then resume the bull run.