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What’s next for Binance Coin after $165m token burn?

Binance Coin (BNB) has performed the largest token-burn in the history of the company, removing 3.6 billion BNB tokens from circulation, which has caused price to hit a new all-time high

Binance Coin (BNB) is an often overlooked cryptocurrency as many consider it just a token used for reducing trading fees on the Binance Exchange. However, its price performance shows that BNB might be much more. Its most recent price movement to the downside decreased the cryptocurrency’s price by over 13%, removing the gains previously made on Monday.

Binance Coin’s overall outlook is bullish for two reasons, one being the most recent $165 million coin burn, which removed 3.6 billion BNB tokens from circulation (meaning reduced supply), while the other is the altcoin season (meaning more money flowing into BNB). Taking a look at its weekly performance, BNB has posted gains of 10.79%, outperforming BTC’s gain of 3.75%, but falling short of ETH’s 28.58% gains.

At the time of writing, Binance Coin is trading for $41.85, which represents a 40.92% gain when compared to its previous month’s value. Binance Coin is currently the 11th largest cryptocurrency by market cap, boasting a value of $6.5 billion.

BNB/USD

Taking a look at the daily chart, Binance Coin has been trading upwards since early December 2020, with its price ultimately reaching a new all-time high of $47.234 today. However, BNB bulls have reached exhaustion, and the cryptocurrency pulled back over 13%, dropping below the 23.6% Fib retracement of $42.5 and seemingly confirming its position under it.

Binance Coin seems to have found strong support on the 21-day EMA, while its upside is dependent on bulls breaking the 23.6% Fib retracement.

BNB/USD daily price chart. Source: TradingView

The technical overview shows Binance Coin’s daily RSI returning to the middle of the range, with its value currently sitting at 54.56.

BNB/USD 1-hour chart. Source: TradingView

Binance Coin’s 1-hour overview shows us how BNB pushed its price up after the token burn on Monday, as well as how it continues its path towards the all-time high levels. However, the Monday push price alongside the new all-time high price seemingly made a double top, which triggered BNB bears to take over the market and push the price down. BNB is now trading below $42.5 after failing to recover from the downturn.

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