The crypto industry maintains its upbeat bias, with Bitcoin stuck above $101,000, and the crypto fear and greed index moving to the green zone. Binance Coin has also done well, with its price remaining above $700. Will the BNB price surge to $1,000 ahead of the upcoming token burn worth $1.02 billion?

BNB Price Could Rally Ahead Of A $1.02b Token Burn

The Binance Coin has remained upbeat as the network prepares for a big quarterly token burn in the next few days. 

According to BNBBurn, the network will incinerate 1,630,246 tokens valued at over $1.02 billion soon. These burns are part of the quarterly autoburn, which is based on the BNB price and the number of blocks produced during the quarter. 

The website expects that the BNB network will then burn 1.545 million tokens with an estimated value of $1.097 billion in the next three months. 

The Binance network also conducts real-time burns that have removed 451 tokens with $328,478 from circulation in the last seven days, bringing the total tokens burnt to 247,337. These tokem burns are based on the network activity and the fees it generates. 

Combined, the real-time burn and the quarterly auto-burn have removed almost 58 million tokens currently worth $41 billion in circulation. That has left the circulating supply at 144 million, a figure that will move to 100 million over time.

Binance Coin Price Technical Analysis

The BNB coin price has been in a slow uptrend after bottoming at $188.3 in January. It has now soared above $695, the upper side of the cup and handle pattern. The upper side of the cup was at $695, where it reached in 2021 and November last year. It has also completed forming the handle section. 

Binance Coin’s uptrend is being supported by the 50-week Weighted Moving Average (WMA), a sign that the uptrend is continuing. It has jumped above the Demark pivot point and the Ichimoku cloud indicator. 

The C&H pattern has a depth of 70%. As such, if we extrapolate the same distance from the cup’s upper side, it means that the token will rise to $1,180 in the longer term. 

BNB Coin Price Targets

The immediate target for the Binance Coin price is at $1,000, which coincides with the first resistance of the Demark pivot point. A move above that level will bring the C&H pattern target into view. The rally to this point could take time since C&H pattern often takes longer to form. 

A drop below the first support of the Demark pivot point at $495 will invalidate the bullish view. If that happens, the coin may drop as low as $188, the lower side of the cup.

Frequently Asked Questions (FAQs)

The BNB price has been in a strong uptrend since the network started its token burns. As such, there are signs that the price will continue doing well over time.

The BNB token burns work in two ways. Daily burns happen when some of the network fees are incinerated. The other approach is the quarterly burn, which is based on prices and block produced.

The immediate target for the BNB price is at $1,000, which is based on the cup and handle chart pattern formation on the weekly chart.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.