The cryptocurrency market remains optimistic as Bitcoin hovers over $101,000, and the fear and greed index indicates a positive outlook. Binance Coin is also doing well, maintaining its price above $700. Could we see Binance Coin’s price jump to $1,000 before the impending token burn valued at approximately $1.02 billion?
BNB Price Could Rally Ahead Of A $1.02b Token Burn
The Binance Coin continues to show optimism with a significant token burn event scheduled to take place in the coming days on its network.
As reported by BNBBurn, the system is set to destroy approximately 1,630,246 tokens worth more than $1.02 billion in the upcoming quarter. These token burns are a regular occurrence, happening every three months, and are determined by the current value of BNB and the number of blocks produced within that period.
In the upcoming three months, it’s anticipated that the Binance Coin (BNB) blockchain will destroy approximately 1.545 million tokens, which is roughly equivalent to a monetary value of about $1.097 billion.
In the past week, the Binance network has destroyed 451 tokens worth approximately $328,478 through real-time token burns. This brings the total number of tokens burned to 247,337. These token burns are carried out based on the network’s activity and the fees it generates.
Together, instantaneous token destruction and periodic quarterly token destruction have eliminated approximately 58 million tokens, which currently hold a value of around $41 billion. This has resulted in the current circulating supply standing at 144 million tokens. However, this number will decrease over time until it reaches 100 million tokens.
Binance Coin Price Technical Analysis
After hitting a low of $188.3 in January, the price of BNB coin has been gradually climbing higher. Currently, it’s surged beyond $695, marking the top of the ‘cup and handle’ pattern, which was also reached in 2021 and November last year. Additionally, the ‘handle’ section of this pattern is now complete.
The upward trajectory of Binance Coin appears to be sustained, as suggested by its climb over the 50-week Weighted Moving Average (WMA). This implies that the positive trend is likely to persist further. Additionally, it has surpassed the Demark pivot point and the Ichimoku cloud line, indicating a strengthening bullish outlook.
In simpler terms, since the C&H pattern’s depth is 70%, this implies that if we measure the same proportion (70%) from the top of the cup, the predicted value for the token in the long run would be approximately $1,180.
BNB Coin Price Targets
The goal for Binance Coin’s price in the near future is approximately $1,000, aligning with the first barrier of the Demark pivot point. If it surpasses that threshold, the objective set by the C&H pattern will become visible. However, reaching this level might require patience as the C&H pattern usually develops over a longer period.
If the price falls slightly below the initial Demark pivot level at $495, it could undermine the optimistic outlook. In this scenario, the coin might potentially decrease in value and reach a minimum of $188, which represents the lower boundary of the ‘cup’.
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2025-01-07 17:18