Binance coin price is currently responding to two chart patterns on the daily timeframe chart. For the general horizontal trendline, the coin price is following a symmetrical triangle (marked in blue). However, for the continued recovery within this triangle structure, prices are following an ascending wedge pattern (marked in yellow). Here is how these patterns will affect BNB price for growth in the near future.
- The symmetrical triangle pattern is a continuation pattern whose breakout from any of the trendlines will support future price action.
- The ascending wedge pattern provides a strong recovery within the two ascending trendlines until the bottom breaks.
- The intraday trading volume in BNB coin is $797.4 Million, indicating a 7% loss.
on April 16 crypto- The price of the asset has turned down from the confluence for the two resistance trendlines mentioned above. With increasing selling pressure in the market, the coin price has dropped 7% in the last three days and is currently trading at $325.
With continued selling, the coin price is likely to drop 8% where the wedge pattern will reach the support trendline. Now until this pattern is broken, the ongoing recovery cycle within the triangle will remain intact and may encourage buyers to breach the symmetrical triangle resistance trendline.
A potential bullish breakout from the resistance trendline of the triangle would give an early sign of an impending bull rally.
On the contrary, if the falling prices break the wedge formation support trendline, it could witness further corrections towards the support trendline of the triangle formation of BNB coin. Thus, disruption of the wedge formation will prolong the long-standing horizontal trend.
Technical Indicators
EMAs: 200 EMAs of the weekly chart, BNB maintains an overall upward trend for its price.
Relative strength index: Despite sideways price action, weekly RSI slope making new highs indicates increased fundamental buying pressure, which could increase the possibility of a breakout of the triangle pattern.
Spot rate: $325, trend: Bearish, volatility: Medium, resistance level – $325 and $360, support level – $300 and $283.
You can find the current market movements here.