Why Binance Coin Price Can Overcome Market Turmoil to Rally Beyond $700?
Highlights
- A healthy retracement and bullish pattern formation allow BNB buyers to remain a dominant player in this asset.
- The sideways trend in Binance Coin could extend if the pennant chart pattern remains intact.
- The intraday trading volume in the BNB coin is $1.76 Billion, indicating a 12% gain
Binance Coin Price: BNB, the native cryptocurrency of the world’s leading cryptocurrency exchange has witnessed a notable downswing amid the recent market sell-off. The Binance coin plunged from $618 to its current trading price of $550 recording a 10.9% weekly loss. Will the four-month sentencing of former Binance CEO CZ increase selling pressure on BNB?
Also Read: Bitcoin Correction: Analyst Explains How This BTC Retreat Is Different
Bullish Pennant Pattern Keep Uptrend Intact For BNB?
Over the past seven weeks, the Binance coin price has traded sideways, resonating within two converging trendlines of pennant pattern formation. In theory, this consolidation is considered a short breather for buyers to regain strength and breach the upper boundary for a prolonged rally.
However, with the ongoing market sell-off and a four-month prison sentence for Changpeng Zhao, the former CEO of Binance, for violating U.S. money laundering laws, the BNB price extends its lateral momentum with no definitive breakout in sight.
Having said that, the bullish pennant pattern is still intact, and the BNB price trading above the 38.6% Fibonacci retracement level indicates a healthy pullback for buyers to remain in power.
If the bearish momentum persists, the Binance coin may plunge another 5% to retest the lower trendline. The potential demand pressure at this support should uplift the BNB price to rechallenge the upper trendline for a breakout.
A successful breakout will release the build-up of bullish momentum and drive a rally to initiate a target of around $770.
Conversely, a breakdown below the pennant support will signal a prolonged downfall below the $500 psychological level.
Technical Indicator:
- Exponential moving average. The coin price trading above the daily EMAs (50, 100, and 200) indicates the broader trend remains bullish.
- Average Directional Index: An uptick in the daily ADX slope at 15% indicates the selling momentum is strengthening and holders must be cautious at crucial support like the lower trendline of the pennant.
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