Could Binance’s Token Burn Ignite BNB’s Price to Reach $700?

Could Binance's Token Burn Ignite BNB's Price to Reach $700?

The 27th Binance BNB Token Burn Completed

The Binance Foundation successfully completed its 27th quarterly BNB token burn on April 24th. During this event, the BNB Chain burned a total of 1,944,452.51 BNB tokens, valued at approximately $1.17 billion at the time of the burn.

Binance’s token burn is a quarterly event designed to reduce the total supply of BNB tokens to 100 million. This process is automated using the Auto-Burn formula. As of now, the total supply stands at 149,532,856 BNB tokens.

Impact of BNB Burn on Binance Coin Price

Initially, the BNB coin price displayed a neutral trend, trading within a closed range between $278 and $345.5 until mid-February. However, as market volatility grew, the altcoin experienced a significant jump of approximately 110%, reaching a high of $635 before facing rejection. Since then, BNB has been trading within a consolidated range between $506.5 and $635.

The recent performance of Binance Coin has been promising:

  • BNB has added 11.43% in the past seven days.
  • It has gained 10.12% over the past 30 days.
  • Its Year-to-Date (YTD) growth is an impressive 94.58%.

This performance indicates strong bullish momentum for BNB, suggesting a positive price trajectory in the coming months.

Technical Analysis and Indicators

The technical indicator Moving Average Convergence Divergence (MACD) shows a rising green histogram, indicating increased buying pressure in the crypto market. Additionally, the averages display a bullish convergence, pointing to a positive outlook for BNB in the near future.

Will Binance Coin Price Rise to $700?

If bullish momentum continues, BNB could test its resistance level of $635 by the upcoming weekend. If the market holds the price at that level, the Binance token may attempt to test its previous all-time high (ATH) of $690.9.

However, in case of a trend reversal, BNB could lose momentum, testing support at $569.5. If bears dominate the market, BNB might drop further to test the lower support level of $506.5 in the upcoming weeks.

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