Binance Coin price has formed a symmetrical triangle pattern as its staked amount rises, and after the network executed its quarterly token burn.
Binance Coin (BNB) was trading at $582, a few points above its lowest level this month. Its performance has brought its market cap to over $84 billion.
The top BNB news was that the network executed its quarterly token burn on April 16. It incinerated 1.57 million tokens, currently valued at over $1 billion. This token burn is typically based on the BNB price and the number of blocks produced during the quarter.
The token burn is part of the project’s approach to boost the value of BNB. According to its tokenomics document, these quarterly burns will continue until the number of circulating tokens drops from the current 140 million to 100 million.
A token burn boosts a token’s price by reducing the number of coins in circulation. It differs from token unlocks, which increase the circulating supply and dilute existing holders.
BNB price also wavered as data revealed that its staking inflows were rising. Data from StakingRewards shows that the net staking flow in BNB has jumped by over $16 million in the last 30 days. That is a sign investors believe the token will perform well. BNB has a staking reward rate of 4%.
BNB price technical analysis
Binance Coin price has pulled back in recent months, falling from a high of $800 to $580. It remains below the descending trendline that connects the highest swings since December 4.
The coin’s downtrend is also being supported by the 50-day moving average, a sign that bears are in control. BNB has formed a symmetrical triangle pattern with two lines about to converge.
BNB price has also formed a triple-bottom pattern around $520. It is currently hovering at the 38.2% Fibonacci retracement level. dTherefore, the coin will likely experience a bullish breakout in the next few days or weeks. A breakout will be confirmed if it moves above the 50-day moving average and the upper side of the descending triangle.
A successful breakout could push it to its December high of $795—up by 37% from the current level. However, a drop below the triple-bottom at $520 will invalidate the bullish outlook.
