BNB Chain’s 26th Quarterly Burn
BNB Chain recently completed its routine quarterly burn, with the 26th burn taking place on January 17th. According to a blog post by the BNB Chain team, a total of 2.14 million BNB, valued at $636 million, were removed from circulation.
This burn saw an increase in value compared to the previous quarter, where the total BNB burned was worth $450 million. The surge in value is attributed to the significant price increase of BNB over the last 90 days, reaching $311.38 at the time of writing, indicating a 44.71% surge.
Technical Analysis and Price Action
AMBCrypto’s technical analysis reveals that BNB closed above both the 9 EMA (blue) and 20 EMA (yellow), suggesting ongoing bullish potential. However, signals from the Awesome Oscillator (AO) indicate a potential decrease in price, with the AO falling and red histogram bars indicating increased downward momentum.
Despite the short-term potential drop below $310, the Chaikin Money Flow (CMF) supports a positive sentiment. As of now, the CMF is at 0.11, suggesting increased selling pressure. A move into positive territory typically indicates buying pressure that could trigger a price increase. With the CMF negative, it implies active selling.
Market Sentiment and Future Outlook
Market players remain bullish on BNB, with AMBCrypto’s analysis of Santiment’s data showing a Weighted Sentiment of 2.638. Weighted Sentiment tracks the sentiment around a project based on unique social volume. While the metric fell, signaling reduced optimism, it remains positive overall.
Simultaneously, the Funding Rate has dipped into the red area, indicating a negative Funding Rate. This suggests that the perp price is trading at a discount compared to the spot price, potentially signaling a bullish trend for the Binance token. If selling pressure persists, participants might exhaust, and following a negative Funding Rate, BNB’s price could reverse, heading towards $330 initially.
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