Binance token price (BNB) is currently responding to two patterns on the daily timeframe chart. According to the analyzes of the general sideways trend line, the currency price follows a symmetrical triangle, marked in blue on the chart below.
However, for the ongoing recovery within this triangle structure, prices respect an ascending wedge pattern (marked in yellow). See how these patterns will further influence the BNB price for growth in the near future.
Patterns and possibilities for BNB
At the last weekly close, which happened on April 16, the price of BNB dropped from the confluence point to two resistance trend lines mentioned above.
With increasing selling pressure in the market, the coin price has dropped by 7% over the past three days and is currently trading at $325.30. Only this Thursday (20), the price of BNB operates in a fall of 2.2%.
In addition to the strong correction, transaction volumes are also on the rise, which indicates sustained selling in the market. With that, the price of BNB is likely to drop another 8%, where it will hit the support trendline of the wedge pattern.
However, until this pattern is intact, the ongoing recovery cycle within the triangle will remain intact. This triangle indicates a resistance breakout and may encourage buyers to break out of the symmetrical triangle resistance trend line.
That is, Binance is forming a triangle within a triangle, where the smaller pattern indicates resistance breakout, but the smaller one indicates correction.
What can happen?
A potential bullish breakout of the triangle resistance trend line will signal an early sign of an upcoming rally. In this scenario, BNB should consolidate the breakout of $325 and maybe even the higher level of $360, or around 10% upside.
On the contrary, please note that if falling prices violate the support trendline of the wedge pattern, the BNB coin may experience further corrections at the support trendline of the triangle pattern.
Thus, the breakout of the wedge pattern will prolong the long sideways trend. And a new correction has as its first support the $300 region.