TheBNBFoundationhasjustconcludedits29thquarterlytokenburnwheremorethan1.7millionBNBwasburned,equatingto$1.07billion,likelyimpactingtheBNBprice.
Thisevent,scheduledforNovember1,2024,isanothersteptowarddecreasingthenumberofBNBincirculation.Thiswouldincreaseitsscarcityand,asaresult,itsprice.TheBNBburncomprisedthetraditionalAuto-BurnmechanismandanadditionalburnviathePioneerBurnProgram.
BreakdownofThe29thQuarterlyBNBBurn
Thisquarter’sburnhaseliminated1,772,712.363BNBtokensintotal.Theprocesswasdividedintotwoparts.1,710,142.733BNBburnedviatheAuto-Burnmechanism,and62,569.63BNBburnedviathePioneerBurnProgram.
ThePioneerProgramfocusesonreturningfundstotheuserswhosenttokenstothewrongaddressesandhavenotreceivedthembackontheBinanceSmartChain(BSC).Consequently,throughincludingthese“lost”tokensinthequarterlyburn,theFoundationalsowantstohelptheaffectedusersanddecreasethetotalsupplyofBNBevenmore.
TheBNBFoundationannouncedthecompletionofthe29thquarterlyBNBburning,withatotalautomaticburningof1772712.363BNB,worthapproximately$1.07billion.Thisquarter\'sburningandfutureburningwillbecarriedoutdirectlyonBSC,andthecorrespondingamountofBNB…
—WuBlockchain(@WuBlockchain)November1,2024
Thetotalvalueoftheburnwasestimatedtobeabout$1.07billionusingtoday’smarketprices.Followingthisburn,thereare144,099,981.1tokensofBNBleft,withmorethan43.5millionBNBexpectedtobeburnedinthefuture.
TheseplannedburnsaretodecreaseBNB’ssupplyinaconsistentmanner.Yet,itwouldalsobeinlinewithBNB’smissiontohaveatotalof100milliontokens.
BNBPriceUnaffectedbytheRecentBurn
However,thislatestburnhasbeenofalargemagnitude,andyetBNB’smarketpricehasnotbeenaffectedmuch.Asofpresstime,BNBpricewastradingat$577,a1.28%declinefromtheintra-dayhighof$588.
TheBNBpricehadrocketedtoathree-monthhighof$615.50lastmonth.ThisispartlyduetothepositivesentimentthatemergedafterthereleaseofBinance’sformerCEO,ChangpengZhao.
Nonetheless,BNBhasbeenunabletocloseapriceabovethe$610resistancelevel.Ithasbeenrejectedseveraltimesasitseekstofindsupport.
Inaddition,themarketmoodtowardsBNBwassomewhatpositivelyinfluencedbyChangpengZhao’srecentappearanceattheBlockchainWeekeventinDubai.Hesharedhisstoriesandplansaftergettingoutofprison.
Zhaodidnotelaborateonhisforecastonthefutureofthemarkets.Yetheremainedpositiveonthefutureofcrypto.
TechnicalIndicatorsPointtoPotentialBreakout
ApotentialInverseHeadandShouldersformationcanbeseenonthechartofBNB.Itisabullishreversalpatternonthechart.
Thispatternincludesthreetroughs,withthelowest(the“head”)around$440andthetwohigher“shoulders”aroundthe$500level.Aresistanceline,or“neckline,”hasformednearthe$575-$580range,whichcouldactasabreakoutpoint.
BNB/USD1-daypricechart(source:TradingView)
Concurrently,theRelativeStrengthIndex(RSI)andAverageDirectionalIndex(ADX)suggestaweaktrend.Thisisindicatingthatthetokenmaytradeinanarrowrangefornow.
TheRSIsitsneartheneutrallevel,whiletheADXreadingof11pointstoalackofstrongdirectionalmomentum.IfBNBmanagestobreakthroughthisneckline,technicalanalysissuggestsapossibleupsidetargetnear$720.
Thesaidpriceleveliscalculatedbyaddingthepattern’sheighttothebreakoutpoint.However,forthisbullishscenariotomaterialize,BNBwouldneedstrongerbuyingmomentumandaconfirmedbreakoutabovethecurrentresistancelevel.
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