Here’s Why Binance Coin ($BNB) Stays Bullish in the Long Term; Buy the Current Dip?

The recent lawsuit filed against Binance, the world’s largest crypto exchange, and CEO Changpeng “CZ” Zhao caused a significant downtick in the majority of major cryptocurrencies. On June 5th, the BNB coin registered an intraday loss of 9% which plunged to the current price of the $277.7 mark. However, it seems the current correction is part of a bigger chart pattern that prevents this altcoin from a major downtrend. Here’s how interested traders can look for long opportunities despite the considerable sell-off.

Also Read: Smart Money Buying Crypto Amid US SEC Binance Crackdown

Binance Coin Daily Chart

• A steeper trendline governs the ongoing correction phase in BNB
• The $250 support aligned with the lower trendline of the triangle pattern creates a strong accumulation zone.
• The intraday trading volume in the BNB coin is $389.5 Million, indicating an 11.2% loss

Source- Tradingview

In the weekly time frame chart, the BNB price shows the formation of a symmetrical triangle pattern. For over a year, the price has rebounded thrice from the resistance trendline and twice from the lower trendline indicating that traders respect this pattern and would likely follow its potential target too.

By the press time, the Binance coin price trades at $278, with an intraday gain of 0.5%, however, if the supply momentum persists, the sellers may pull the coin 8% down to retest the lower trendline at $260.

Previously, when altcoin plunged to the support trendline, the prices witnessed a massive growth in June 2022, and January 2023. Therefore, until this pattern is intact, the BNB holders can maintain a bullish outlook.

Will Binance Coin Reclaim $350 Mark?

The triangle pattern is currently carrying a sideways trend in BNB price. Under the influence of this pattern, the coin price could witness a prolonged consolidation phase for the coming month or two until either of its trendlines is breached. Therefore, interested traders are looking for a long opportunity for a breakout above the pattern’s resistance trendline. This potential breakout could push the prices to the first target of $350.

• Bollinger Band: The coin price hitting the 3rd deviation band of the BB indicator, suggests the price has witnessed an aggressive fall in a relatively short period and therefore, a minor pullback move or sideways action is plausible.
• Average Directional Index: An uptick in the daily ADX slope accentuates the sellers’ strength and a higher possibility to reach $250.