Amid the prevailing market downturn, BNB, the native token of leading cryptocurrency exchange Binance, has demonstrated remarkable resilience, consistently holding strong above the crucial $285 support level. As previously highlighted by Coingape, the Binance price is currently exhibiting a bullish flag formation on its daily chart, a development that suggests a potential for buyers to regain momentum and propel the token to higher levels.
Why BNB Price Is Poised for 38% Growth?
A recent reversal from the flag pattern resistance indicates the BNB price may continue in the correction phase.
As per the Fibonacci retracement tool, the coin traders may face sufficient demand pressure at $295 and $280
The intraday trading volume in the BNB coin is $1.027 Billion, indicating a 20% gain
Binance Coin Price| TradingView Chart
Over the past month, the price of Binance Coin price has shown significant volatility, fluctuating within the confines of a flag pattern defined by two converging, downward-sloping trendlines. Although these trendlines indicate a correction phase, the coin’s maintenance above the 38.2% Fibonacci retracement level suggests that the broader recovery trend remains unbroken.
As the Bitcoin price fell below $40,000, the wider crypto market experienced increased selling pressure, extending the correction phase across most major cryptocurrencies. During this sell-off, BNB’s price took a notable hit, dropping from $320 to $295, culminating in a 7.85% decline over the last 48 hours.
While there is a potential risk of the price of BNB dipping to $280 due to ongoing supply pressures, buyers still have a significant chance to reverse the trend as long as the flag pattern remains valid. Consequently, bullish traders should be on the lookout for a breakout above the pattern’s resistance trendline, as this would be a strong indication of an uptrend continuation.
Should such a breakout occur, it could potentially elevate the coin’s value to an impressive high of $430
Is Binance Coin Price Ready for Bull Run?
During the December rally, the BNB price experienced a significant breakout from the resistance trendline of a symmetrical triangle pattern that had been forming over two years. This escape from a prolonged sideways trend signifies a major shift in market dynamics to provide an advantageous opportunity for buyers to re-enter the market and continue the recovery trend. Following the trajectory suggested by the triangle pattern, there’s a potential for BNB’s price to target a substantial-high of around $560
Relative Strength Index: The RSI slope below 50% reflects the selling momentum is aggressive.
Exponential moving average. A bullish alignment between the daily EMAs (20, 50, 100, and 200) indicates broader trend remains positive.
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The post Here’s Why Binance Coin Price May Outperform Bitcoin Recovery in Coming Month appeared first on CoinGape.