The BNB Foundation has just concluded its 29th quarterly token burn where more than 1.7 million BNB was burned, equating to $1.07 billion, likely impacting the BNB price.
This event, scheduled for November 1, 2024, is another step toward decreasing the number of BNB in circulation. This would increase its scarcity and, as a result, its price. The BNB burn comprised the traditional Auto-Burn mechanism and an additional burn via the Pioneer Burn Program.
Breakdown of The 29th Quarterly BNB Burn
This quarter’s burn has eliminated 1,772,712.363 BNB tokens in total. The process was divided into two parts. 1,710,142.733 BNB burned via the Auto-Burn mechanism, and 62,569.63 BNB burned via the Pioneer Burn Program.
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The Pioneer Program focuses on returning funds to the users who sent tokens to the wrong addresses and have not received them back on the Binance Smart Chain (BSC). Consequently, through including these “lost” tokens in the quarterly burn, the Foundation also wants to help the affected users and decrease the total supply of BNB even more.
The total value of the burn was estimated to be about $1.07 billion using today’s market prices. Following this burn, there are 144,099,981.1 tokens of BNB left, with more than 43.5 million BNB expected to be burned in the future.
These planned burns are to decrease BNB’s supply in a consistent manner. Yet, it would also be in line with BNB’s mission to have a total of 100 million tokens.
BNB Price Unaffected by the Recent Burn
However, this latest burn has been of a large magnitude, and yet BNB’s market price has not been affected much. As of press time, BNB price was trading at $577, a 1.28 % decline from the intra-day high of $588.
The BNB price had rocketed to a three-month high of $615.50 last month. This is partly due to the positive sentiment that emerged after the release of Binance’s former CEO, Changpeng Zhao.
Nonetheless, BNB has been unable to close a price above the $610 resistance level. It has been rejected several times as it seeks to find support.
In addition, the market mood towards BNB was somewhat positively influenced by Changpeng Zhao’s recent appearance at the Blockchain Week event in Dubai. He shared his stories and plans after getting out of prison.
Zhao did not elaborate on his forecast on the future of the markets. Yet he remained positive on the future of crypto.
Technical Indicators Point to Potential Breakout
A potential Inverse Head and Shoulders formation can be seen on the chart of BNB. It is a bullish reversal pattern on the chart.
This pattern includes three troughs, with the lowest (the “head”) around $440 and the two higher “shoulders” around the $500 level. A resistance line, or “neckline,” has formed near the $575-$580 range, which could act as a breakout point.
Concurrently, the Relative Strength Index (RSI) and Average Directional Index (ADX) suggest a weak trend. This is indicating that the token may trade in a narrow range for now.
The RSI sits near the neutral level, while the ADX reading of 11 points to a lack of strong directional momentum. If BNB manages to break through this neckline, technical analysis suggests a possible upside target near $720.
The said price level is calculated by adding the pattern’s height to the breakout point. However, for this bullish scenario to materialize, BNB would need stronger buying momentum and a confirmed breakout above the current resistance level.
