BNB is yet to rally despite Binance’s recent token burn
BNB has been underperforming despite Binance burning over $500 million worth of BNB tokens last week.
BNB, the native coin of the Binance ecosystem, is up by less than 1% in the last 24 hours. Over the past seven days, BNB has lost more than 1% of its value.
The coin’s performance is in line with that of the broader cryptocurrency market. The total crypto market cap is down by less than 1% today and has fallen below the $920 billion mark.
Bitcoin is up by 1% in the last 24 hours and continues to trade above the $19,000 support level. Ether, meanwhile, is up by more than 2% so far today and is now trading above $1,300 per coin.
The performance comes despite Binance burning $547 million worth of BNB tokens earlier this month. This was the 21st quarterly BNB token burn carried about by Binance.
Earlier this year, Binance burned over $700 million worth of BNB tokens, one of its highest since the cryptocurrency exchange was established five years ago.
Key levels to watch
The BNB/USD 4-hour chart is bearish as BNB has been underperforming over the last few days.
The MACD line is below the neutral zone, indicating a bearish trend. However, it is slowly rising and could enter the positive region if the broader market embarks on a bullish run.
The 14-day RSI of 51 shows that BNB is not in the oversold area despite underperforming in the last few days.
At press time, BNB is trading at $272.2 per coin. If the slow market recovery continues, BNB could surge past the $280 resistance level before the end of the day.
However, BNB could struggle to move past the second major resistance level at $293 in the near term.
If the bearish trend persists, BNB could be forced to defend the resistance level below $259 over the next few hours or days.
Where to buy now
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.