As Kriptokoin.com reported, the crypto market was officially mixed this week. Bitcoin fell below $70,000, and this was enough to shake the entire market. The approach of the US elections and increasing uncertainty make investors nervous. While altcoins have also had their share of this decline, things are developing a little differently for Binance Coin (BNB). Will Binance’s latest quarterly burn have significant impacts on the BNB price?
Status of BNB After Burning
Binance has completed its 29th quarterly burn. Exactly 1,772,712,363 BNB tokens – worth approximately $1.07 billion – are out of circulation. This burn is an important part of Binance’s strategy to increase the value of BNB by reducing the coin supply. As supply decreases and demand increases, the price is theoretically expected to rise. Investors are also carefully monitoring the effects of this burn. Everyone has the same question in mind: “Will this burn move BNB higher?”
Binance does these burns on the Binance Smart Chain, so everything is transparent and traceable. Tokens are irreversibly sent to an address called “blackhole”. So, these tokens are completely destroyed. This gives investors some relief, because the supply is actually decreasing. But time will tell whether BNB will truly gain value.
Will BNB Reach $970?
For the last 6 weeks, BNB price has been fluctuating between $620 and $530. The market is completely unstable. Buyers and sellers are literally on hold. But there is a promising development for technical analysts: the inverted head-and-shoulders formation. This formation is generally accepted as a bullish signal. The head part represents the lowest level, and the two shoulders represent the higher levels.
If this formation works as expected, BNB price will recover from the $530 support and surpass the critical resistance at $633. If this resistance is broken, the possibility of BNB rising up to $970 is on the table. This means a gain of 54%. Of course, this scenario is something that investors are looking forward to, but it is not certain.
What Do Technical Indicators Say?
If we look at the general trend of BNB price, the price is still above the 100 and 200-day moving averages. This indicates that the upward trend continues in the long term. But there is also a risky side to this job. If the selling pressure intensifies again near $180, things will get messy. That’s why investors need to be prepared for both situations.
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