Binance Coin Price Prediction: Flag Pattern Formation
Over the past three weeks, BNB, the native cryptocurrency of Binance, has experienced significant volatility. The market fluctuation, partly attributed to uncertainties surrounding the Bitcoin ETF launch, led to a 14.5% decline from $338 to $291.
A closer examination of the Daily Timeline Chart reveals that this uncertain price movement is adhering to two downward-sloping trendlines, suggesting the formation of a bullish continuation pattern known as a Flag.
Binance Inflow Spikes After Regulatory Settlement
A potential bullish breakout from the flag pattern will signal intensified buying pressure in the market. The correction to 38.2% Fibonacci retracement tool indicates the buyers are having an upper hand over this asset. The intraday trading volume in the BNB coin is $845 Million, indicating a 21% gain.
After a notable recovery in December 2023, the Binance coin price began 2024 on a quieter note, with its bullish momentum showing signs of fatigue. This post-rally correction phase, marked by price indecision, has been technically classified as the development of a common continuation pattern, the Flag.
This setup suggests that the BNB price could regain its bullish energy in the coming week. Reinforcing this optimistic outlook, Binance Coin recently saw a significant capital inflow, as reported by Satoshi Club in a post on X (formerly Twitter).
- Despite recent legal challenges and leadership changes, @binance has seen net inflows of $4.6 billion since its November settlement with US agencies.
- In January alone, it attracted $3.5 billion, marking its strongest month since November 2022.
In light of these developments and the emerging Flag pattern, there is potential for BNB to break through its upper resistance level, indicating the possibility of an impending rally.
Flag Pattern Sets a 30% Upsurge Ahead
As of this moment, Binance Coin is trading at $314, showing signs of a bullish breakout from the Flag pattern. Should this breakout occur with a daily candle closing above the pattern, it could pave the way for a 36% increase. Conversely, if market pressures continue, there’s a risk that BNB could further retract and fall below the $288 support level.
Technical Indicators Supporting the Upsurge
- Exponential Moving Average: A bullish alignment between the daily EMAs (20, 50, 100, and 200) indicates a strong bullish sentiment in the market.
- Moving Average Convergence Divergence (MACD): The MACD and Signal lines nearing a bullish crossover, suggesting that buyers are gaining momentum for the next upward movement. BNB’s value could potentially reach $430.
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