BNB price readies for bullish breakout after 1.84 million tokens burned
- BNB completed its second quarterly auto-burn and removed $741 million worth of Binance Coin tokens out of circulation.
- A regulatory filing with Thailand Stock Exchange revealed Gulf Energy’s investment in BNB, worth an undisclosed amount, through a crypto subsidiary.
- Proponents believe a reduction in BNB supply coupled with the demand from institutional investors could fuel a Binance Coin price rally.
BNB has now completed its second auto-burn in 2022, pulling 1.84 million BNB tokens out of circulation. Analysts predict a breakout in BNB price as a supply shortage brews across exchanges.
BNB price prepares for a breakout amidst tokenburn
BNB price is set for a rebound after the altcoin completed its auto-burn and further reduced its circulating supply. A total of 1.84 million BNB tokens were pulled out of circulation and burned, wiping out $741 million in Binance coin.
The burn schedule systematically reduces the volume of BNB in circulation and feeds a supply shortage. Typically, a reduction in circulating supply across exchanges results in a price rally.
Interestingly, a recent filing with the Thailand Stock Exchange revealed Gulf Energy’s investment in BNB. The energy giant purchased an undisclosed amount of BNB tokens through a crypto subsidiary and diversified into crypto.
Proponents believe a brewing supply shortage in BNB, coupled with institutional demand for Binance Coin could drive a price rally.
Analysts have evaluated the BNB price trend and adopted a bullish outlook. @DaCryptoGeneral, a pseudonymous crypto analyst, believes Bitcoin – which influences all other cryptocurrencies – price action is still bullish, and the recent downside move was a healthy correction for BNB. The analyst argues that BNB is ready for its next impulsive move, and a retest of the broken symmetrical triangle could push the token to $510.
$BNB (1D): price action is still bullish and downside move at the moment is healthy price correction for next impulsive move
— CRYPTO GENERAL (@DaCryptoGeneral) April 19, 2022
Price had retest the broken symmetrical triangle and had broken out, I expect a continuation higher and price to trade to $510 key level#BNB pic.twitter.com/wgQwo1a9KW
@AltcoinSherpa believes BNB is currently in the accumulation phase, and the token is ready for a move to the upside.
$BNB: I think this one explodes to the upside after it breaks out of this range. It looks like accumulation to me. #BNB pic.twitter.com/bMq1UrgTQe
— Altcoin Sherpa (@AltcoinSherpa) April 19, 2022
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
