BNB price unfazed as Binance burns 1.7M tokens

Binance burned more than 1.7 million BNB tokens as part of its three-month burn initiative.

Binance, the world’s largest cryptocurrency exchange by trading volume, announced its 29th quarterly BNB token burn on November 1, removing a total of 1772712,363 BNB from circulation.

The 29th quarterly $BNB token burn has been completed directly on BNB Smart Chain (BSC), with 1772712.363 $BNB being burned 🔥

View burn details below 👇https://t.co/QjGO4lmhDP pic.twitter.com/SrEKXtAc4Y

— BNB Chain (@BNBCHAIN) November 1, 2024

The total burn consisted of two parts. First, 1,710,142.733 BNB were removed through Binance’s regular Auto Burn process, a mechanism Binance uses quarterly to reduce the total BNB supply.

Secondly, an additional 62,569.63 BNB was burned to resolve an issue with BTokens, which are tokens created when assets are linked to the Binance Smart Chain. Some users accidentally sent these BTokens to inactive addresses, locking them out.

To compensate for these lost tokens, Binance refunded users through the Pioneer Burn Program and included the unburned portion in this quarter’s burn.

The total made up 1.22% of the altcoin’s total supply, valuing the transaction at close to $1.07 billion at current prices.

Prior to this, Binance had removed more than 1.64 million BNB tokens worth approximately $971 million in July.

BNB not affected

The token burn did not work in favor of BNB, which was down 1% at $576.98 at press time; The market value decreased by 2.1% to 83.27 billion dollars.

BNB hit a three-month high of $615.50 on September 28 after former Binance CEO Changpeng Zhao was released from prison after serving a four-month prison sentence for failing to properly enforce anti-money laundering and sanctions regulations at Binance. rose.

Since then, the altcoin attempted to regain these levels but was rejected twice at the resistance level near $610. Technical indicators show that the BNB price is currently consolidating.

BNB price, ADX and RSI chart | Source: crypto.news

On the 1-day BNB/USDT price chart, BNB’s Relative Strength Index was at 47, while its Average Directional Index showed 11; This indicates that the current trend is weak and the altcoin may continue to trade at the range limit.

Meanwhile, a bearish crossover in the Moving Average Convergence Divergence histogram, where the MACD line is below the signal line, indicates potential downside pressure. However, without stronger trend signals, significant movements in either direction seem unlikely.

BNB MACD chart | Source: crypto.news

Uncertainty regarding BNB’s next move was also highlighted by pseudonymous trader Crypto Yapper, who noted that BNB’s price is “squeezed at the top,” which is the point where support and resistance lines meet as the price range narrows.

While this usually signals that a major breakout is coming, the analyst added that the price could move “either up or down.”