Connect with us

Binance

Binance coin price analysis: Buyers eye the $420 resistance

Published

on

Binance coin price analysis: General price overview

Bollinger band is wide on the daily Binance coin price analysis, indicating the coin is highly volatile despite trading a bearish trend. The coin has been trading in a range of intraday lows of $389 and the highest of the day, $420. This should make investors be keen enough as one can lose his money or record high gains. High volatility best suites swing traders, buying the coin when the price is down and selling them after it has spiked.

Our Binance Coin price analysis for the next 24 hours suggests a rise ahead of us. The exchange token established a higher low on the daily chart at $399, compared to yesterday’s figure of $390. As a result, we anticipate BNB/USD to rally today and attempt to break through the $420 resistance.

Binance coin price analysis: Buyers eye the $420 resistance 1
Source: Coin360
The overall cryptocurrency market is trading in the green zone, with the majority of the coins recording gains. Bitcoin went up by 0.16 percent, Ethereum increased by 0.8 percent, while Binance Coin increased by 1.20 percent. Cardano emerged as the best performing altcoin of the day with a 6 percent improvement, while Solana is the worst performing altcoin. 
Binance Coin price movement in the last 24 hours: Binance Coin retraced from $390
Binance coin price movement in the last 24 hours
Binance coin price analysis has been bearish in the last 24 hours. However, bulls are attempting to break the negative trend and set the coin in upward momentum. The buyers are aiming to break past the daily resistance created at $420.
According to the coinmarket cap, the Binance coin trading volumes have risen by 26 percent, totaling $1.9 billion. Meanwhile, the total market cap is at $65 billion, ranking BNB #6 in the overall market. 
BNB/USD 4-hour chart: BNB ready to reverse?
Binance coin price analysis: Buyers eye the $420 resistance 2Source: Tradingview
On the hourly chart, we can see that the Binance coin price is resisting further depreciation. Bulls anticipate starting an upward momentum that will result in the price surpassing the intraday high of $420. It’s probable that if the currency passes this resistance, it will stop at $450.
Binance Coin attempted to break above the previous high of $510 but lacked the momentum to go much farther, and a reversal from the $500 resistance followed. Binance Coin has retraced to its $400 low in the past 24 hours, where support was discovered.
Since then, Binance Coin/USD has fluctuated in a sideways pattern as a new higher low is established. We expect a reversal to follow over the next 24 hours and Binance Coin to attempt another bid to reach new milestones early next week unless the Binance Coin price action breaks below the support.
Binance Coin Price Analysis: Conclusion 
The general view of the BNB market is bearish. However, on the one-hour Binance coin price analysis chart, the buyers attempt to create solid support that will aid the coin to break over the daily resistance at the intraday high at $420.

News Source

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

New proposal aims to raise Binance Coin value by burning BSC fees

Published

on

Amid the ongoing rally of Binance’s native token, Binance Coin (BNB), the developers of Binance Smart Chain (BSC) have proposed more measures to maintain the token’s deflationary model and improve its intrinsic value.

According to a new Binance Evolution Protocol, BEP-95, BSC developers are considering introducing a real-time burning mechanism for a portion of gas fees to reduce BNB supply and drive BNB value higher by increasing the demand. According to the BEP, BNB holders will decide how to dispatch the BSC gas reward.

Releasing the proposal on Friday, BSC developers noted that the new BEP might decrease the total amount of BNB that validators and delegators obtain from staking. The burning mechanism will be enabled by introducing governable parameters for two system smart contracts for collecting gas fees.

Advertisement

Created by Binance in 2017, BNB is a deflationary token by design, meaning that Binance burns a percentage of the BNB supply every three months to maintain the token’s value. Binance will stop burning BNB once 50% of the initial supply has been burnt and only 100,000,000 BNB remain.

The latest BNB token burn took place last Monday, with Binance burning 1,335,888 BNB ($640 million) in its 17th quarterly burn.

The proposal comes amid BNB seeing a major rally recently, with the token breaking above $500 on Wednesday. At the time of writing, BNB is the third-largest cryptocurrency by market capitalization after Bitcoin (BTC) and Ether (ETH). The token is trading at $495, up around 44% over the past 30 days. BNB’s all-time high was recorded in May 2021, with the token surging to as high as $686, according to CoinGecko.

Advertisement

The latest BIP, which occurred in August, is similar to a new transaction fee mechanism implemented for Ethereum’s London upgrade. According to Etherchain, the current average ETH burn rate amounts to 3.76 ETH or $15,448 per minute.

News Source

Advertisement
Continue Reading

Binance

BinanceUS Blamed the 87% Bitcoin Flash Crash on Algorithm Bug

Published

on

A day after the massive 87% flash crash on its trading platform, Binance US has blamed it on an algorithm bug.

The US branch of the leading cryptocurrency exchange explained that yesterday’s severe flash crash that saw BTC’s price dumping from $65,000 to $8,700 in mere seconds was because of a bug in the trading algorithm.

  • CryptoPotato reported yesterday when the price of bitcoin nosedived from its near all-time high level to below $10,000 on Binance US.
  • Other trading platforms, such as Kraken and FTX, also saw flash crashes as BTC dropped more on those two exchanges than it did in reality.
  • Although these flash crash events do occur from time to time, an 87% drop (the one on Binance US) is something that caught the attention of the public.
  • The company decided to explain what happened in a letter shared with Bloomberg. It reads that the problem came from an algorithm bug.
  • “One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off. We are continuing to look into the event but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved.”
  • A flash crash is an event in which the price of the underlying asset falls hard before it immediately recovers to its previous levels.
  • It could be particularly damaging to traders using leverage as it can liquidate their positions in an instant.
  • Another recent one in early October saw BTC dropping by several thousand dollars once more on Bitstamp following a massive sell order of over 210 bitcoins.

News Source

Advertisement
Continue Reading