Binance Chain Just Burned 1.6M BNB Tokens Worth $914M, a Potential BNB Price Rally Ahead?

Binance Chain has completed the 31st quarterly BNB token burn, eliminating a massive 1.6 million BNB tokens, equal to around 914 million worth of BNB. This is in an effort to fulfill Binance’s future goal of reducing the supply of BNB tokens to 100 million tokens. As the supply continues to decline, the resulting scarcity could drive the BNB Price higher over time, especially if demand picks up across the market.

How the Burn Could Shape BNB’s Future Price

The automatic token burn, introduced through Binance’s BEP95 proposal, reduces the BNB token supply every quarter. With about 146 million tokens left in circulation, the latest burn edges the network closer to its target. While that may boost long-term confidence, BNB Price still faces short-term resistance levels around $635, especially with the token sitting below key EMAs.

Facing Short-Term Hurdles Despite Long-Term Promise

Despite the optimism around the token burn, short-term technicals suggest caution. The RSI hovers at 45, showing weak buying pressure, and the MACD hasn’t confirmed a strong reversal. Although the long-term impact of reduced BNB token supply could be positive, BNB Price is currently stuck in a range, needing a breakout above $584 or risk slipping further.

BNB Derivatives data | Source: Coinglass

Even with these challenges, the reduction in supply and the potential for increased demand could set the stage for a future rally. Let’s dive deeper into BNB’s current price action and what we can expect based on recent trends and technical indicators.

BNB Price Action Analysis of April 16th, 2025

The BNB price on a 5-minute chart highlights a significant shift in momentum following a breakout from an ascending channel. The price tested the $586 resistance multiple times before breaking out, but failed to hold above it, sharply reversing into a descending channel. This downtrend was accompanied by successive death crosses on the MACD and oversold RSI readings, confirming bearish momentum. Eventually, price found strong support near the $577 level, which held firm on multiple retests, forming a key horizontal support zone. Notably, RSI touched oversold territory several times around this level, signaling weakening bearish pressure. The MACD also began showing golden crosses near this support, suggesting potential reversal setups.

Chart 1, Analyzed by Alokkp0608, published on April 16th, 2025

Following the support bounces, the BNB price entered a sideways trading range between $577 and $584, reflecting short-term consolidation. The RSI recovered toward the midline, and MACD recently printed another golden cross, both hinting at building bullish momentum. However, repeated death crosses on earlier rallies above $582 indicate buyers struggle to sustain strength. Price now hovers near the mid-range of this zone, and a clean break above $584 could invite a retest of the $586 resistance area. Conversely, losing the $577 support could push BNB into new lows.

BNB Token Burn Boosts Confidence, but Market Still Hesitates

Binance’s massive $914 million BNB token burn has sparked some optimism, especially with the long-term goal of reducing supply to 100 million. That kind of scarcity could set the stage for strong price growth. But in the short term, the charts tell a more cautious story. BNB is still struggling to push past key resistance at $586, and recent bearish signals suggest buyers aren’t fully in control yet. While indicators like the MACD and RSI are starting to lean bullish, the price is still stuck in a range. For now, traders should stay alert and wait for a clear breakout above $584 or a drop below $577 before making any big moves.