Last week, Binance burnt Binance coin tokens worth $165 million, as a part of its 14th Quarterly BNB burn. The amount of BNB tokens to be burnt is determined by the trading volumes of the previous quarter. This way the exchange periodically reduces the coin's supply. The exchange has also unlocked 16 million BNB tokens worth $750 million.
Post the BNB burn, the prices continued to rise till the morning of 21st January. Afterward, due to large-scale sell-offs by BTC whales, BTC prices started crashing. Consequently, BNB prices too plummeted to $36.9160. But from this point, a trend reversal occurred. The coin's prices were on an upswing and reached a high point of $43.3580 on 25th January. However, some price corrections happened and BNB prices started falling again.
In the last 24 hours, BNB prices are fluctuating between $39.6955 and $42.0984. They are exhibiting a bullish trend.
Currently, BNB is trading at $41.4100. The RSI (Relative Strength Index) indicator shows rejection at 70. This means sellers are dominating. Thus, prices are likely to fall implying a bearish momentum.
The OBV indicator shows an uptrend. Thus, prices may become bullish.
A closer look at the A/D indicator resonates with the OBV indicator. Both A/D and prices are steadily rising. Thus, a bullish trend is imminent.
As per Fibonacci retracement levels, a bull is confirmed if the prices break out of the first resistance level of $42.6655. The next level of resistance will be met at $43.0163 and so on.
As per pivot calculations, an uptick is imminent if prices go past the first resistance level of $42.9073.
The current price is not close to the resistance prices indicated by the pivot and Fibonacci retracement level calculations. But an upswing in BNB prices, OBV, and A/D confirm buying pressures. However, a contrasting picture presented by the RSI indicator, simply means that price corrections are occurring.
With no clear signs of a price pullback, we can expect BNB prices to display a positive trend within the next 48 hours.