On November 1, BNB Chain announced the completion of its 29th quarterly burn, effectively decreasing the cryptocurrency's total supply. Following this event, Binance Coin (BNB) bulls are eager to capitalize on the reduced supply to drive the token's price upward.
BNB Chain Completes 29th Quarterly Token Burn
BNB Chain, the blockchain developed by Binance for decentralized applications, announced on November 1 the completion of its 29th quarterly token burn. This time, a total of 1.77 million BNB was burned, comprising 1.71 million BNB for the Auto-Burn and an additional 62,569 BNB for BTokens.
After shifting from Ethereum to its native blockchain, BNB Chain commenced its token burns with the aim of reducing the supply to 100 million. The 29th quarterly burn is valued at over $1 billion, contributing to the reduction in BNB's total supply.
This token burn is anticipated to instill bullish sentiment among holders, who believe that the reduced supply will drive up the price of BNB. Following the burn event, the Balance of Power (BoP) reading on the daily chart rose, indicating an increase in bullish momentum.
Typically, a declining BoP indicates bearish control, which is often followed by a decrease in price. However, in this case, BNB bulls seem to be gaining strength.
With BNB’s price trading around the $576 mark, the possibility of further upward movement remains.
On the other hand, if bears are able to overpower bulls this time, the prediction could be invalidated. In that scenario, BNB might fall below the $563 support and decline to $543.
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