Binance Coin (BNB) traded higher, hitting $36.79 before profit-booking put breaks on the uptrend that was presumably kick-started by the suggestion of a possible big coin burn.
After Binance CEO tweeted that his team had explored a program intended to accelerate the network’s coin burn program, Binance Coin saw a local high of $36.79.
In the past 24 hours, BNB’s price has risen by around 7 percent, jumping to highs of $36. While, as seen on the 4-hour chart, the upside price action has cooled off slightly, the short-term outlook for BNB indicates that another leg up is possible.
If bulls break through the immediate resistance zone and the crypto-currency market also experiences a rally, this outlook will improve.
The price of Binance Coin broke above the 38.2% Fib level (32.77) and 23.6% Fib level ($34.32) on the daily map. On the upward scale, the next target is $36.80, with a jump to $40.00 likely to spur increased purchasing.
On the downside, the immediate cushion bulls need to weather downward pressure offers two previous resistance levels. The amounts are at the level of 38.2% Fib ($32.77) and the level of 50% Fib ($31.52).
Although the daily RSI stays above the midpoint and indicates bullish bias in the short term, the trend will turn negative if the price drops below $30.00. In this scenario, bulls will rely on 50-SMA and 100-SMA help.
Since the breakout experienced over the weekend, the 4-hour chart shows increased downward pressure. BNB/USD trades inside an ascending parallel channel that in the short term could extend profits to $38.00.
However, prices have been capped below the upper trendline, and to indicate negative divergence, the RSI has turned lower. The next support thresholds are 50-SMA ($30.96) and 100-SMA ($29.71) if the price drops below the parallel channel’s lower limit.
Binance Coin is trading about $35.00 against the US dollar on most exchanges at writing.
Bitcoin’s leap to a new high above $24,000 sparked a public rally in the altcoin. The BNB price broke above the $30 level and hit the $36.00 ceiling over the weekend. But the statement by Binance CEO Changpeng Zhao about the coin’s economic model was an additional factor that could have driven BNB/USD over the resistance line.
The Binance leader announced plans for an accelerated burn program in a tweet posted over the weekend. The data saw the BNB/USD pair leap from $31.05 to $35.20 before the gains were extended to $36.79 by bulls.
The cryptocurrency exchange announced its 13th coin burn per quarter on 17 October 2020. The business saw Binance eliminate more than 2 million BNB ($68 million in USD) from circulation forever, with the price of BNB increasing from about $27.00 to $32.00. Coin burn (similar to buying-back of stock by listed businesses) permanently eliminates tokens from circulation and results in a cryptocurrency price increase.