Binance Cash (BNB) Steady at $460 – Brace to the Trade Breakout - Forex News by FX Leaders

Binance Cash (BNB) Steady at $460 – Brace to the Trade Breakout

Posted Wednesday, January 19, 2022 by
Arslan Butt • 2 min read
  • On Wednesday, BNB/USD is trading with a slight bearish bias at 463.50, gaining immediate support at 460
  • Binance is committed to destroying 50% of the circulating supply of about 100 million BNB through its quarterly burns
  • The recent decline in BNB/USD could also be attributed to the rising price of the US dollar, due to the negative correlation between them
The BNB/USD closed at $471.20, after setting a high of $479.30, and a low of $457.50. On Tuesday, the BNB/USD pair maintained its bearish trend and fell to its lowest level in eight days. The world’s largest cryptocurrency exchange, Binance, announced its new Binance Coin Auto-Burn protocol in December 2021, to provide more transparency and predictability for its community.

 

BNB/USD

The auto-burn mechanism automatically calculates the number of BNB to be burnt, based on the average dollar-denominated price of BNB during the quarter and the number of blocks produced on the Binance Smart Chain in the same period. Binance has announced that the first quarterly BNB Auto Burn has removed about 1.684 million BNB, worth about $792 million, from circulation. The burn represents an amount equal to 0.84% of Binance’s initial supply.Binance is committed to destroying 50% of the circulating supply of about 100 million BNB through its quarterly burns. The 18th burn and the first-ever automated burn, which was announced on Monday, failed to push the cryptocurrency significantly, and the coin remained on the back foot.

Last week, Bloomberg estimated the net worth of Binance CEO, Changpeng Zhao, stating that he was the 11th richest person in the world, with around $96 billion. This net worth makes him the wealthiest billionaire in the crypto world.

The recent decline in BNB/USD could also be attributed to the rising price of the US dollar, due to the negative correlation between them. The US dollar is high onboard, due to the bets on interest rate hikes from the US Federal Reserve in March. Next week, the Fed will hold its first policy meeting of this year, which could provide a clear timeline or signal the date of the first-rate hike. Market participants are excited about this revelation, which is keeping the greenback higher and weighing on the BNB/USD.

Binance Cash (BNB/USD) – A Technical Outlook

On Wednesday, the BNB/USD is trading with a slight bearish bias at 463.50, and gaining immediate support at 460. The formation of candles above 460 suggests an uptrend in the BNB/USD pair. Violation of the 460 level may offer us a strong selling trend until 430.

Daily Technical Levels

Support           Resistance
459.36             481.16
447.53             491.13
437.56             502.96
Pivot Point:    469.33On the 4-hour time frame, the BNB/USD pair has formed a symmetrical triangle pattern that is likely to keep the movement of Binance cash primarily choppy. However, the violation of this pattern will drive further price action in BNB. On the higher side, the significant resistance remains at $503. So let’s consider taking a sell trade under $460 and vice versa.
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