HOW WILL BINANCE COIN (BNB) PRICE REACT TO $1 BILLION TOKEN BURN?
On November 1, BNB Chain announced the completion of its 29th quarterly burn, which resulted in a decrease in the total supply of the cryptocurrency.
The important event seems to have significantly affected the sentiment of BNB bulls. We figure out with the help of on-chain metrics and technical indicators whether they have enough strength to start a full-fledged rally.
Investors are interested in Binance Coin again
BNB Chain announced the burning of 1.77 million BNB worth over $1 billion. The token burn helps to reduce the total supply, which potentially supports bullish sentiment among holders of the asset.
The event noticeably affected investor activity. The chart below shows that the Balance of Power (BoP) indicator increased after the burn, indicating an improvement in sentiment among market participants.
The Weighted Sentiment indicator, which reflects the overall market attitude towards the cryptocurrency, is also showing growth. This means that most investors believe in the positive dynamics of BNB, which can contribute to the growth of demand for the altcoin.