Binance’s BNB Token Burn Could Boost Its Price as High as $230

The largest cryptocurrency exchange, Binance, announced in an X post today that it has completed the twenty-fifth quarterly Binance Coin (BNB) burn. According to the post, about 2.14 million BNB have been burned. The burned tokens are worth approximately $453,506,792 and account for about 1.38% of the total supply.

#Binance completes the 25th Quarterly #BNB Burn!

🔥 2.14m #BNB has been burned 🔥 pic.twitter.com/3KtkE1y6f5

— Binance (@binance) October 16, 2023

Burning tokens can have a positive effect on the price of a cryptocurrency token, but it is not necessarily a guaranteed outcome. However, in BNB’s case, it seems like Binance’s burn announcement could have given the altcoin a bit of a price boost.

At press time, CoinMarketCap indicated that BNB saw its price rise by 2.84% over the past 24 hours. As a result, the utility token was trading at $213.14, which was a new daily peak price.

BNB also saw its 24-hour trading volume go up by more than 80% since yesterday. Consequently, the token’s intraday volume was able to climb to $408,925,772. Additionally, BNB also secured a 0.98% increase in its price over the past week of trading.

Daily chart for BNB/USDT (Source: TradingView)

Things were looking up for BNB from a technical perspective as indicators on the altcoin’s daily chart suggested its price may rise soon. This was after the cryptocurrency broke above the key $210 mark during the past day of trading, and continued to trade above this level at press time.

Firstly, the daily RSI line crossed above the daily RSI SMA line over the past few days. This is a significant technical flag that suggests that momentum has shifted in favor of buyers. Meanwhile, the daily MACD line crossed above the daily MACD signal line as well over the past 24 hours, which suggests a bullish trend reversal may be in the cards for BNB.

Should these technical flags be validated, BNB’s price may rise to the next resistance level at $220 in the coming few days. Thereafter, continued buy pressure could lead to BNB flipping this level into support before continuing to climb to the next mark at $230.

On the other hand, if BNB closes a daily candle below the $210 price point within the next 48 hours, then the bullish thesis may be invalidated. In this scenario, the altcoin could be at risk of falling to $200 in the following week.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source