BNB Price Prediction Ahead of $1B Token Burn as Key Metrics Jump

Key Insights

• BNB price has formed a double bottom pattern on the daily chart.
• The BSC network will execute a big token burn soon.
• Key metrics like active users, fees, and transactions are rising.

BNB price has been sideways over the past two months as the crypto winter continued. Binance Coin was trading at $650 on April 18, a few points below this month’s high. This consolidation may be about to end, as it has formed a double-bottom pattern ahead of a major token burn and as its key metrics are rising.

BNB Price Has Formed a Double-Bottom Pattern

Binance Coin has slowly formed a highly bullish double bottom, pointing to a major comeback in the near term. This double-bottom was at $576, its lowest level in March and April this year. Its neckline was at $685, its highest level in March this year.

The token is attempting to break above the Supertrend indicator, a move that would confirm further gains. At the same time, the Percentage Price Oscillator (PPO), which is a unique form of MACD, is attempting to cross the zero line. The Relative Strength Index has moved above 50 and is pointing upwards.

Therefore, the BNB price is likely to have a strong bullish breakout in the coming days. If this happens, the next key level to watch will be the double-top’s neckline at $685. Crossing that price will signal further gains, potentially to the 50% retracement level at $983, which is about 55% above the current level.

However, a drop below the double-bottom point at $576 will invalidate the bullish outlook and signal more downside, possibly below the support at $500.

Binance Coin to React to Upcoming Token Burn

One of the most appealing qualities of the BNB price is its highly deflationary nature. Unlike other cryptocurrencies, it does not have token unlocks. At the same time, the network incinerates tokens worth billions of dollars a year.

The BSC Chain executes daily token burns by incinerating most of the fees the network makes. It has burned tokens worth over $343k in the last seven days using this approach. Altogether, this approach has burned $181 million in tokens since its inception.

At the same time, the network conducts a quarterly token burn based on the number of blocks produced. This approach eliminates tokens valued at over $1 billion each quarter. In this case, it will burn 1.56 million tokens in the coming weeks.

Data shows that the network has a circulating supply of 134.78 million tokens, and the goal is to reduce it to 100 million.

BSC Chain’s Transaction and Network Fees are Growing

Meanwhile, data shows that the BSC network is doing well, with transaction volume and fees starting to rebound. Data compiled by Nansen shows that BSC was one of the fastest-growing chains in the crypto industry in the last 30 days.

The network processed over 413 million transactions during this period, up by more than 5%. In contrast, Ethereum handled about 71 million transactions in this period. Only Solana, which processed 2.3 billion transactions, performed better.

More data shows that the BSC Chain generated $10 million in fees in this period, beating Ethereum, which made $9.4 million. Solana made $15.5 million. Still, it is worth noting that Hyperliquid, the biggest perpetual futures exchange, made $51 million in the same period.

Still, some other metrics are not doing well, partly due to ongoing Hyperliquid growth. Its DEX volume dropped to $28 billion in March from $113 billion in April last year. Another one is that the staking supply has dropped by 10.7k tokens worth over $7 million.

The BNB price may be ripe for a strong bullish breakout in the coming days, as it has formed a double bottom on the daily chart. This rebound may be boosted by improving geopolitical conditions and growing metrics such as active users and network fees.

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