As a seasoned financial analyst with extensive experience in the cryptocurrency market, I have closely monitored the Binance Coin (BNB) price action over the past few weeks. While the sideways trading within the bullish pennant pattern is common during consolidation phases, the ongoing market sell-off and recent news regarding former Binance CEO Changpeng Zhao’s four-month prison sentence for money laundering charges have intensified selling pressure on BNB.
As a cryptocurrency market analyst, I’ve observed that Binance Coin (BNB), the native token of the largest cryptocurrency exchange by trading volume, has experienced a significant price drop in the wake of recent market turmoil. The value of BNB plummeted from $618 to its current trading price of $550, representing a 10.9% weekly loss. I ponder if the upcoming four-month sentencing of Binance’s former CEO, Changpeng Zhao (CZ), could potentially fuel additional selling pressure on BNB.
Bullish Pennant Pattern Keep Uptrend Intact For BNB?
For the past seven weeks, the Binance coin’s price has moved in a narrow range between two converging trendlines, forming what’s known as a pennant pattern. This sideways trading is seen as a pause where buyers are taking a break to gather more power before pushing the price above the upper boundary and potentially initiating a significant upward trend.
As a crypto investor, I’ve noticed that despite the market sell-off continuing unabated and the recent four-month prison sentence handed down to Changpeng Zhao, the ex-CEO of Binance for breaching U.S. money laundering regulations, BNB‘s price shows no clear signs of a significant breakout. Instead, it seems to be moving sideways indefinitely.
Despite what was previously stated, the bullish pennant formation remains valid, and the Binance Coin (BNB) currently trading above the 38.6% Fibonacci resistance level suggests that buyers are regaining control following a healthy correction.
Should the downtrend continue for Binance Coin, it could dip an additional 5%, reaching the lower boundary for a possible retest. The support level at this point may spark renewed buying interest, propelling BNB back up towards the resistance line to attempt a breach.
If a breakout is achieved successfully, it will unleash the accumulated buying pressure, leading to a surge in price with a potential goal near $770.
In other words, if the price falls through the pennant support, it could indicate a significant drop in value below the $500 mark.
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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2024-05-01 17:20