Binance Coin (BNB) is currently testing a critical resistance level near $700, signaling a potential breakout driven by recent token burns and increased network activity.
After consolidating within a range of $630 to $690 since May, BNB’s price action suggests an ascending triangle formation, a bullish pattern that often precedes upward momentum.
According to COINOTAG, “The 32nd quarterly token burn, removing 1.59 million BNB, combined with rising active addresses, underpins a strong scarcity and demand dynamic for BNB.”
BNB approaches $700 resistance amid token burns and rising active addresses, setting the stage for a potential breakout toward $745 in the near term.
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BNB Price Consolidation and Ascending Triangle Formation Indicate Potential Breakout
Since early May, Binance Coin has maintained a trading range between approximately $630 and $690, with a notable dip to $600 on June 23 that quickly recovered, reaffirming the ascending triangle pattern. This pattern is characterized by a flat horizontal resistance near $685 to $700 and an upward sloping trendline providing support. The recent price action, with BNB testing the $700 resistance level and reaching intraday highs of $695, suggests a buildup of bullish momentum. Traders and investors closely watch this zone, as a decisive breakout above $700 could signal a new leg higher.
Impact of Token Burns and Network Activity on BNB’s Supply Dynamics
The 32nd quarterly token burn executed by the BNB Chain permanently removed 1.59 million BNB from circulation, effectively tightening supply. Token burns are a strategic mechanism to reduce circulating supply, which can enhance scarcity and potentially increase value over time. This supply contraction, when paired with rising demand indicators such as active addresses, creates a favorable environment for price appreciation. Data from Glassnode reveals that active BNB addresses surged from around 500,000 in mid-April to over 1 million by early June, maintaining elevated levels between 900,000 and 1 million despite a recent minor pullback. This sustained network engagement underscores growing user interest and transactional activity within the BNB ecosystem.
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Technical Indicators Support Bullish Momentum with Caution for Short-Term Pullbacks
Technical momentum indicators provide additional context for BNB’s near-term outlook. The Relative Strength Index (RSI) currently stands at 67, approaching the overbought threshold of 70, which often precedes brief consolidations or pullbacks. Meanwhile, the Moving Average Convergence Divergence (MACD) remains bullish, with the MACD line positioned above the signal line and the histogram displaying increasing green bars. These signals collectively suggest that while bullish momentum is intact, traders should anticipate possible short-term corrections before any sustained breakout. Volume confirmation will be critical to validate a move above the $700 resistance level.
Key Support and Resistance Levels to Monitor for Trading Strategies
Should BNB successfully breach the $700 resistance with strong volume, the next target zone lies between $730 and $745, an area that historically acted as a rejection point during previous rallies. On the downside, immediate support is found between $625 and $635, followed by weaker support near $615 and the ascending trendline support around $600. These levels are crucial for risk management and entry points for traders looking to capitalize on potential breakout scenarios. Maintaining vigilance on these price zones will help market participants navigate volatility effectively.
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Binance Coin’s current price action near the $700 resistance, combined with the recent token burn and elevated active addresses, positions BNB for a potential breakout toward the $730–$745 range. While technical indicators favor bullish momentum, traders should remain cautious of short-term pullbacks due to overbought RSI levels. Monitoring volume and key support zones will be essential for confirming sustained upward movement. Overall, BNB’s fundamentals and technical setup suggest a promising outlook, inviting investors to watch closely for breakout confirmation.
Source: https://en.coinotag.com/bnb-price-tests-700-resistance-amid-token-burn-and-rising-active-addresses-possible-breakout-ahead/