Binance Coin (BNB) has recently exhibited a period of price consolidation, displaying a lateral movement within the range of $245 to $234 over the past two weeks.
This intriguing price action has given rise to a bullish reversal pattern known as the inverted head and shoulders, hinting at potential future price movements.
The inverted head and shoulders pattern is a popular technical analysis formation, often indicating a potential trend reversal. It consists of three main components: a low, followed by a lower low forming the “head,” and then another low resembling a “shoulder.”
The crucial point of this pattern lies at the “neckline,” which is a horizontal resistance level connecting the highs of the head and the two shoulders. A breakout above this neckline is typically a bullish signal, indicating a potential price upswing.
BNB’s Potential For Recovery And Growth
The pattern signifies a shift from a downtrend to an uptrend, suggesting that selling pressure may be waning and buying interest could be building up.
Currently priced at $244 according to CoinGecko, BNB has experienced a minute 0.4% increase in the past 24 hours, and a 3.8% increase over the last seven days.
On the daily chart, BNB is currently trading in the $26K range at TradingView.com
Analyzing the price action reveals the emergence of the aforementioned inverted head and shoulders pattern. If the buyers can successfully uphold this newly formed support level, it could pave the way for a potential 10% recovery, potentially propelling the price toward the upper trendline of the established channel pattern.
Binance Expands Influence With Japan Launch
In a significant move, Binance, the world’s largest cryptocurrency exchange, has launched its Japan subsidiary – Binance Japan K.K. The inauguration of this platform introduces BNB to the Japanese market for the first time, contributing to a slight weekly price uptick.
This expansion into Japan signifies Binance’s commitment to broader global outreach and adoption of its native token, BNB.
Binance Coin’s recent price action, characterized by a tight consolidation range, has unveiled an inverted head and shoulders pattern. This technical indication, if validated, could usher in a trend reversal and a potential price surge.
Additionally, Binance’s strategic expansion into Japan through its subsidiary launch has introduced BNB to a new market, underlining its prominence and potential for further growth.
As the cryptocurrency market evolves, these developments may play a pivotal role in shaping BNB’s trajectory in the coming weeks.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Securities.io