The recent lawsuit filed against Binance, the world’s largest crypto exchange, and its CEO, Changpeng “CZ” Zhao, has led to 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 that the current correction is part of a larger chart pattern that prevents this altcoin from experiencing a major downtrend. In this article, we will explore how interested traders can look for long opportunities despite the considerable sell-off.
In the weekly timeframe chart, the BNB price shows the formation of a symmetrical triangle pattern. This pattern has already seen the price rebound thrice from the resistance trendline and twice from the lower trendline over the past year. The fact that traders respect this pattern and are likely to follow its potential target too indicates that the BNB holders can maintain a bullish outlook as long as the pattern remains intact.
At the time of writing, 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 down by 8% to retest the lower trendline at $260. Previously, when the altcoin plunged to the support trendline, the prices witnessed massive growth in June 2022 and January 2023. Therefore, the triangle pattern is currently carrying a sideways trend in the 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.
Interested traders looking for a long opportunity are keeping an eye out for a breakout above the pattern’s resistance trendline. This potential breakout could push the prices to a first target of $350.
The Bollinger Band, which shows the coin price hitting the 3rd deviation band, suggests that the price has witnessed an aggressive fall in a relatively short period. As a result, a minor pullback move or sideways action is plausible. On the other hand, an uptick in the daily Average Directional Index (ADX) slope accentuates the sellers’ strength and a higher possibility of reaching $250.
In conclusion, the Binance Coin’s future movement depends on the interplay between the symmetrical triangle pattern’s support and resistance trendlines. Despite the recent sell-off, traders could still remain confident in the coin’s growth potential as long as the pattern remains unbroken. However, it’s crucial to conduct proper market research before investing in cryptocurrencies, as market conditions and the opinions of individual experts can vary widely.
Source: Coingape
