Amid continuous coin burning, Binance Coin (BNB) prices show strong growth, attracting the attention of investors and analysts. A strong bullish breakout is becoming increasingly likely.
Current Price and Competitor Comparison
BNB was trading at $620 on Tuesday, up 20% from its March lows and 22% below its all-time high. BNB outperformed Bitcoin and other layer-1 coins such as Cardano and Solana due to its strong ecosystem growth. According to DeFi Llama data, the total value locked in its ecosystem rose to $5.17 billion in March, while other networks lost assets.
Coin Burning Mechanisms
BNB has outpaced most altcoins due to its highly deflationary nature. The token uses two types of burns that reduce the circulating supply. The real-time burn mechanism incinerates a fixed ratio of gas fees generated by the network. In the past seven days, 939 BNB valued at $577,838 were burned. Additionally, the quarterly auto-burn mechanism burned 1.57 million BNB worth $1.01 billion in the first quarter.
Technical Analysis and Price Forecast
The weekly chart shows that the coin has formed an ascending channel over the past few months. This channel forms the handle section of a cup and handle pattern, a popular bullish continuation signal. BNB also remains above the 50-week moving average, another positive indicator. Thus, BNB is likely to continue rising as bulls target the key resistance level at $790, representing a 28% gain from current levels. This outlook will be confirmed if the price breaks above the key resistance at $662.
Coin burning, strong technical setups, and other initiatives support a positive outlook for Binance Coin. Close monitoring of network and market changes can offer investors valuable opportunities.
