- Binance Coin holds above two key levels; the ascending parallel channel support and $30.
- BNB/USD ignored the most massive coin burn exercise in terms of dollar value.
- The spike in Age Consumed points towards increased volatility in the short term.
Over the last four weeks, Binance Coin has been on an upward roll. Before the uptrend, the token suffered a massive blow on hitting resistance at $34. However, support established at $22 put bulls back on track.
Lock-step trading seems to be dominating the price action, but BNB is generally in an upward trend. At the time of writing, the crypto is doddering at $30 while seeking refuge to avert potential losses towards $28. Some hurdles characterize the upside; nonetheless, buyers appear to be up to the task.
Binance Coin ignores the largest burn in dollar value
As reported on Monday, Binance, the company that issues BNB, completed the scheduled quarterly coin burn that saw $68 million wiped off the token's circulating supply. Roughly 2.3 billion tokens were burned in the exercise that happens to be the biggest ever in dollar value.
Burning is a process that destroys a volume of tokens, completely removing them from circulation. This process aims to make the digital asset scarce, in the end pumping its price, at least theoretically.
The latest coin burn impact was not significant as Binance Coin barely moved upwards from its current price level. On the other hand, its effect on the circulating supply might kick in at a later date.
Binance Coin bulls intend to sustain the uptrend
Following the successful coin burn, BNB buyers are working around the clock to hold the price above $30 and the ascending parallel channel. The action above the 50 Simple Moving Average (SMA) is likely to set BNB on a path to the channel's middle boundary. Slightly below the channel, the 100 SMA is in line to offer support and credence to the bullish outlook.
Again, if BNB/USD corrects past September's high at $34, it will call for more buying orders, creating volume to support the bullish momentum. Binance Coin has performed incredibly well in 2020, but there is room for improvement as we get to the end of the year.
BNB/USD 4-hour chart
According to data by Santiment, BNB Age Consumed recently hit a monthly high. The Age Consumed of an asset measures tokens' movement relative to the time they have stayed idle. Usually, a spike precedes significant volatility and massive price action. Therefore, Binance Coin is likely to encounter high impulsiveness in the near term.
Binance Coin Age Consumed chart
Looking at the other side of the fence
It is worth mentioning that bears could awaken if BNB extends the price action beneath the 100 SMA. In this case, the initial lower target is the 200 SMA at $28 in the 4-hour timeframe. Trading below this zone would be detrimental to the cryptoasset as it is likely to trigger dire losses towards the significant support at $22.
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