Burn Event Triggers Market Optimism: Will BNB Price See Rally?

• The BNB price traded sideways around $575 and is poised for a range breakout.
• BNB Foundation completed its 29th quarterly token burn.

The BNB Foundation recently held the 29th quarterly token burn. That saw the burn of over 1.7 million tokens. It was equivalent to $1.07 Billion, thus affecting the BNB price.

The latest burn was done using the BNB chain’s auto-burn mechanism. The platform uses this burn to continually reduce the total supply of BNB to 100 million tokens.

BNB Completes 29th Quarterly Burn: Here’s What It Means

The BNB Foundation announced in yesterday’s blog that it completed its 29th quarterly token burn on the BNB chain. This involved an auto burn of 1,710,142,733 BNB and another burn of 62,569,63 BNB in BTokens. It took this event to $1.07 Billion in value.

The Pioneer Program aims to refund the tokens to the users. This includes the users who sent tokens to the wrong address and haven’t been refunded on the Binance Smart Chain (BSC).

Therefore, the foundation also aims to support the users and reduce the supply of BNB even further. It will do this by including these ‘lost’ tokens in the process of quarterly burn.

The remaining BNB supply after the burn is 144,099,981.1 tokens, leaving about 43,533,387.84 tokens to be burned later. The foundation said the burn amount could be changed to ensure transparency and predictability. This could happen in response to the BNB price and the number of blocks generated on BSC.

Furthermore, future burns will occur directly on the BSC due to the ongoing BNB chain fusion. Because of this, most of the functions of the BNB Beacon are transferred to the BSC. These BNBs will then be transferred to a ‘blackhole’ address equivalent to the ‘Burn Address.’

BNB Price Prediction: Is a Breakout Imminent?

BNB price prediction on a daily time frame indicated that a range breakout was on the horizon. A daily close above the $620 mark would trigger massive buying momentum. It may spree toward the $650 mark in the following sessions.

The BNB price was trading at $575.38, with an intraday rise of over 0.20%. The token witnessed flat movements. It boasted a market cap of $82.91 Billion. Additionally, the token has a total supply of $144.1 Million.

An ascending triangle formation was witnessed on the daily timeframe. The token is resting above the 100-day and 200-day EMA mark. However, it consolidated below the 20-day EMA mark and struggled to break the $600 round mark.

The Money Flow Index (MFI) reading pointed toward a liquidity exit from the market. That led to a price consolidation. The Futures Open Interest (OI) has dropped over 2.30% to $526.90 Million. This signified a long, unwinding move over the past 24 hours.

However, the long-short ratio was around 0.9543 at press time. That conveyed the dominance of long contracts. The immediate support zones for BNB were $560 and $550. At the same time, the upside barriers were $585 and $600.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.