- BNB’s $1 billion pullout could send potential bullish momentum towards the $606 resistance
- Higher volumes and open interest showed strong market interest and optimism
The BNB Foundation recently completed its 29th quarterly burn, removing more than 1.77 million BNB (worth approximately $1.07 billion) from circulation. This continuous combustion strategy is intended to reduce supply and increase value for holders. In fact, previous burns have often led to market reactions as well.
For example, the 28th burn led to a modest 0.5% price increase to $596, with trading volumes increasing 22%. The 27th burn in April also saw Binance coin [BNB] up 5% after burning 1.94 million BNB, worth $1.17 billion.
Therefore, with each burn, the scarcity of BNB grows, potentially paving the way for a significant market move.
Can BNB break through its main resistance?
At the time of writing, BNB was trading at $584.70, having appreciated just under 1% in 24 hours. On the daily chart, BNB appeared to be approaching a crucial resistance level near $606 – a point it has struggled to surpass in the past.
However, the price formed an ascending triangle pattern – a typically bullish indicator.
If the price breaks above this $606 level, there could be more buying interest, pushing the price into a new uptrend. Conversely, if resistance remains firm, Binance Coin could record a pullback, potentially testing lower support levels near $560. Therefore, this level represents a major battleground for the token.
Source: TradingView
A sign of market interest?
In addition to the fire, trading activity has also increased enormously.
Derivatives trading volumes rose 21.97% to $697.49 million, while Open Interest rose 2.3% to $543.60 million. This increase in volume and Open Interest indicated a growing interest among traders, perhaps as they prepare for a decisive move.
Source: Coinglass
Higher volume often means greater market activity, and a simultaneous increase in Open Interest generally indicates strong conviction among traders.
Therefore, this increased activity may indicate an impending outbreak. Whether it is positive or negative depends on BNB’s ability to reach the $606 level.
Source: Coinglass
BNB liquidations – Shorts on edge?
Finally, the latest data sets showed $156.02k in long liquidations versus $100.96k in shorts, indicating slightly bullish sentiment.
As Binance Coin moves closer to its resistance, short positions have decreased, indicating caution among the bears. If BNB breaks out, we could see more short liquidations, potentially creating even more upside potential.
Source: Coinglass
Read Binance Coins [BNB] Price prediction 2024–2025
Will this fire be the catalyst for BNB’s needs?
With Binance Coin approaching a crucial resistance and trading volume increasing, the 29th burn could serve as a turning point. Past troubles have created bullish momentum, and a break above $606 could open doors for another rally.
However, if the economy fails to reach this level, consolidation or a mild dip may follow.