- Binance Coin (BNB) forms a bull flag, signaling potential continuation of its bullish trend.
- Consolidation shows weakening seller momentum and growing buyer readiness for a breakout.
- Short-term indicators show neutral to slightly negative momentum, suggesting temporary consolidation before gains.
Binance Coin (BNB) is in a consolidation phase after a strong gain in price and is exhibiting signs of a potential continuation of a bullish trend. The price chart formation shows a strong bull flag, which signals a weakening in the momentum of sellers and a readiness among buyers to make a move. A breakout above the resistance level will spark a new wave of gains.
At the time of writing, Binance Coin (BNB) is trading at $888.6, with a 24-hour trading volume of $1.77 billion and a market capitalization of $122.35 billion. Over the past 24 hours, the coin has seen a modest decline of 0.67%, reflecting a short pause after recent gains.
Binance Coin Eyes Next Uptrend
Crypto analyst Alpha Crypto Signal pointed out that a bull flag pattern is being formed in BNB on the 4-hour chart. This chart pattern is a conclusive indication of a continuation move.
A strong move higher followed by a controlled downward channel with declining force behind the sellers and increasing absorption of supply by buyers confirms this theory.
“This consolidation is a good thing,” explained Alpha Crypto Signal. “A clean breakout above the resistance level of this flag will confirm that this uptrend is not over and perhaps mark the beginning of a new leg up.
Until this breakout takes place, patience will be a necessity – no breakout, no trade. But when BNB gets above this flag, all momentum will quickly follow.”
Also Read | Binance Coin Price Outlook: Will BNB Hit $1,000 Before Year-End?
BNB Weekly Momentum Shows Neutral Signals
Analyzing the situation from a chart perspective, the RSI is currently at 49.54, which is lower than the average of approximately 60.30, indicating a neutral state due to a reduction in pace. BNB is currently above most of the MA Ribbon, with resistance offered by the 20-week SMA at $967.62.
The other moving averages are positive, with values for the 50-week SMA, 100-week SMA, and 200-week SMA at $776.02, $669.47, and $477.94, respectively, which reinforces an increasing trend.
Looking at MACD, short-term momentum is slightly negative. The MACD line is approximately -32.59, with a signal line of 35.89. Additionally, the histogram is at -68.48, which is an indication of short-term selling pressure. This means that BNB may have a short-term consolidation phase before another major movement, despite a positive trend in the market.
Overall, the current status of BNB is in a pause state, which forms a bull flag pattern. A strong breakout above the level of resistance can lead to a push towards higher gains.
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