Connect with us

Binance Coin

Binance Coin Price Prediction: BNB eyes $600, may overshoot to $700

Published

on

  • Binance Coin price shows a slump in bullish momentum after a 15% upswing.
  • A minor pullback to $520 or below could provide buyers an opportunity to refuel.
  • The supply zone that ranges from $569 to $603 is the only thing keeping BNB from entering price discovery mode.

Binance Coin price shows a slowdown in its buying pressure as it pierces a crucial resistance barrier. Investors can expect BNB to retrace to immediate support levels before surging higher.

Binance Coin price may slide lower before hitting record levels

Binance Coin price shows signs of exhaustion as the Momentum Reversal Indicator (MRI) flashed a cycle top signal in the form of a red ‘one’ candlestick on the 6-hour chart. This setup forecasts a one-to-four candlestick correction.

Interestingly, the timing of the MRI’s sell sign coincides with the exchange token piercing the supply barrier’s lower boundary at $569, confirming a correction soon. The pullback could extend anywhere between 4% to the bottom of the demand zone at $494.

This retracement will allow buyers to scoop up BNB at a discount for the next leg that aims to tap the swing high at $639.

If Binance Coin price produces a decisive close above this level, the discovery phase could allow market participants to propel it to the 162% Fibonacci extension level at $719.

Advertisement

BNB/USDT 6-hour chart

BNB/USDT 6-hour chart

Supporting this retracement and spike to recent highs is the 30-day MVRV model by Santiment, which tracks the average profit/loss of investors who purchased BNB over the past month.

Currently, the fundamental index is at 6.67%, but historical data reveals that a local top could occur around 21%. This indicates that Binance Coin price has room to grow.

Advertisement

BNB 30-day MVRV chart

BNB 30-day MVRV chart

Daily Active Addresses is a metric that can be used to determine the state of investors. A higher number indicates a bullish bias since more users are interacting with the BNB network and are interested in it at the current price levels.

At the time of writing, this indicator has declined 58% from 313,000 on 130,000 addresses between April 20 and April 27. This sudden slump paints a bearish picture, suggesting that investors are fleeing the network via reallocation of funds or profit-taking.

Advertisement

BNB daily active addresses chart

BNB daily active addresses chart

While a minor retracement seems likely, investors need to pay attention to the extent of the pullback. If Binance Coin price slides $472, it will invalidate the bullish scenario and might extend the correction up to $444.

News Source

Advertisement

Binance

Binance proposes a real-time token burning mechanism to boost BNB value

Published

on

  • Binance has proposed the BEP-95 aimed to burn a percentage of transaction fees as a deflationary measure.
  • BEP-95 will occur alongside the quarterly token burn and well after the 100 million token supply is achieved.

Binance Smart Chain (BSC) is taking further steps to incorporate an additional deflationary mechanism to increase token valuation. As announced today, Binance (BNB) is introducing a new Binance Evolution Protocol (BEP) known as BEP-95. The BEP stands out from the network’s occasional token burns since it introduced a real-time burning mechanism.

According to Binance, a fixed portion of gas fees collected by validators in each block will be sent to the burn address. The ratio initially set at 10 percent, is adjustable according to changes proposed by the Binance community. BSC validators get to vote on community proposals, where voting power is based on staked BNB.

For a proposal to be reviewed by the validators, it has to receive a minimum deposit of 2,000 BNB (mainnet). All BNB is returned to holders after the finalization of the voting process. A proposal that wins is that which gathers 50 percent of the total voting power on the mainnet. Binance notes that voted-upon parameters are implemented immediately.

Details of Binance BEP-95 token burning mechanism

BEP-95 became relevant as it speeds up the BNB token burn, and makes the network increasingly decentralized. The BNB supply cap is about 168 million tokens and Binance intends to burn until 100 million tokens remain in circulation. This will take about 5-8 years to complete, according to Binance. The network’s most recent quarterly burn wiped out over 1 million tokens, worth about $639 million, from circulation.

Advertisement

However, the latest update from its blog now says the BEP-95 burn “will continue functioning” even after the above target is attained. With the burn, Binance expects the intrinsic value of the BNB token to increase in tandem with demand. The network notes that validators and delegators may receive fewer tokens from staking, but the “fiat-denominated value of their rewards may increase.” Moreover, BNB has multiple use cases that benefit all holders of the token.

Currently, BEP-95 is in the draft stage and the network is yet to give a specific date for its implementation.

Several blockchains use the crypto-burning mechanism to create token scarcity and a subsequent increase in token value. Ethereum, for instance, uses the EIP-1559 for this purpose. 

Advertisement

BNB price action

BNB, the fourth-largest cryptocurrency by market cap, was trading at $494 at press time, according to our data. The token has gained 0.8 percent in the day, and 4.8 percent week-over-week. Similar to other digital assets, BNB has rallied fueled by the Bitcoin-led gains. Crypto investor and YouTuber Lark Davis expects “good things” for the BNB price following its launch of a $1B growth fund.

News Source

Advertisement
Continue Reading

Binance

Binance Destroys $639 Million Worth of BNB

Published

on

Binance’s burning a record $639 million worth of BNB has failed to push the price significantly higher

Leading cryptocurrency exchange Binance has announced the completion of its 17th quarterly burn.

The company destroyed more than 1.3 million BNB tokens that were cumulatively worth roughly $639 million.

This marks Binance’s biggest quarterly burn to date in dollar terms.

“Burning” is the process of shrinking the token’s circulating supply. Binance is on track to destroy 50% of all BNB tokens every quarter.

The number of tokens that are destroyed each quarter is calculated based on the trading volume on Binance’s crypto-to-crypto exchange.

Advertisement

As reported by U.Today, Binance burned $393 million worth of BNB in the second quarter and $595 million in the first quarter of 2021.

The BNB price added a meager 1.2% after the burn was announced before quickly trimming even such modest gains.

BNB
Image by tradingview.com

Last week, BNB recorded a double-digit price spike after announcing a $1 billion growth fund.

News Source

Advertisement
Continue Reading

Binance Coin

Binance (BNB) Price Analysis: On-chain Data Shows Rise In Demand for the BNB Coin, Will BNB Outperform BTC?

Published

on


Why Is Binance Coin (BNB) Price Surging? Among many reasons recent 1 billion USD fund for project development of DApps on the Binance Smart Chain [BSC] is one major catalyst fueling the BNB price. 

The crypto data tracking service, Santiment spotted an increase in demand for BNB on wallets with BNB whales acquiring roughly 412K BNB in recent weeks. The move shows that big money remains bullish on the BNB coin in the face of regulations.

The BNB burn protocol is another interesting bullish catalyst for the BNB token price as the bulls hold on to their positions in wait for this event.

Advertisement

A dive into the price chart should also give us further insights into significant patterns and technical drivers of the BNB price.

Binance (BNB) Weekly Chart Analysis

Both bearish and bullish divergence price vs. oscillator patterns keeps the BNB price hovering within the $680 resistance and $211.70 support. 

The recent bear trap candlestick pattern on 20 September prepares a bullish tone for a price increase beyond the $509.90 resistance and heading to the $680.00 ATH.

The RSI [4] couldn’t reach level-25, which therefore represents a bullish outlook for the BNB price.

A breakout above the $680 resistance could see the BNB price rising into four-figure price zones for the first time.

Advertisement

Binance (BNB) Daily Chart Analysis

Following a collapse of hidden bullish divergence trend lines on 07 September ‘21, the BNBUSDT price slumped by roughly 23%, then quickly reversed to the upside by an opposing regular bullish divergence on 28 September ’21.

The bulls have re-established control as the RSI enters the overbought area for the second time at press time.

Meanwhile, an impending bearish divergence setup is projected around the $518.90 resistance. On the other hand, a surge in bullish momentum may see the RSI shooting beyond the 85-level, therefore, nullifying the anticipated reversal pattern.

Binance (BNB) 4HR Chart Analysis

The 4HR time frame follows a similar price dynamics as the daily time frame with an opposing regular bullish divergence on 12 October ’21 at 08:00. This led to a parabolic upswing for the BNB price and soaring above the 07 October 12:00 resistance [$446.60].

Raging bulls could use the old $446.60 resistance as new support, which is a possible upward scenario for the BNB price. A prolonged correction phase could see the price dropping to the $424.00 support.

Binance (BNB) Intraday Levels

  • Spot rate: 468.4
  • Mid–Term Trend [H4]: Strong Bullish
  • Volatility: High
  • Support: $392.20, $424.0, and $446.60
  • Resistance: $473.0 and $518.90

News Source

Advertisement
Continue Reading