BNB skyrockets following a recent burn event led by Binance. Surging over 10% in just a few days, pushing the token towards $645. As the market closely watches this surge, the question arises: is it worth betting on further gains?
Binance’s fundamentals continue to strengthen, adding weight to the bullish narrative. The most recent automatic quarterly burn eliminated about 1.57 million BNB, worth $916 million, from circulation. This reduction brought the total supply to around 139.3 million BNB, with 40.8 million Binance tokens (BNB) still slated for future burns.
Simultaneously, the ecosystem is undergoing significant upgrades. BNB Chain has revamped its incentive program to reward native projects with strong performance on the chain. This simplifies staking and enhances user experience. Additionally, Binance’s $100 million liquidity program and $2.1 billion DEX volume have highlighted the increasing institutional interest.
Therefore, the convergence of token supply compression of Binance Coin, ecosystem upgrades, and liquidity injections provides a strong foundation. It could support a sustainable bullish price movement.
The 4-hour BNB price chart has clearly shown the formation of an inverse head and shoulders reversal pattern. The neckline is situated just below $600. A clear breakout and close above this neckline could trigger accelerated buying pressure, pushing the price towards the $644 resistance zone.
The consistent formation of higher lows around the right shoulder indicates increasing buying intent. Consequently, bulls now appear better positioned to overcome upper resistances compared to previous unsuccessful attempts. However, confirmation through sustained price action supported by volume remains essential for any sustained move.
Exchange flow data also aligns with the bullish narrative. At the time of writing, BNB has recorded $19.26 million in inflows versus $16.06 million outflows. These flows suggest subtle but steady accumulation.
Although the net positive flow may not be significantly large, it still indicates growing investor conviction. Historically, such slow accumulation patterns often precede impulsive price movements, especially when associated with strong technical supports and on-chain activity.
BNB is at a critical juncture. Technical patterns, supply dynamics, sentiment metrics, and ecosystem growth all point towards a continuation of the bullish trend. However, reclaiming $600 and securing a daily close above it remain the key first step to validate this outlook.
If bulls manage to cross this threshold convincingly, a swift move towards the $645 resistance level becomes increasingly likely. It would set the stage for BNB to reaffirm its status as one of the most resilient assets in the market.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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