Binance Coin Price Analysis: BNB/USDT Bullish Pennant Pattern Ready to Send Price into Orbit

  • Binance Coin (BNB) has gained a chunky 150%, following six consecutive weeks of moving higher.
    Loom Network has added its support for Binance Coin (as a payment method.

BNB: Recent Price Behavior

Binance Coin continues to trade at elevated levels, after running 150% to the upside from the back-end of January. BNB/USDT has been rallying for the past six consecutive weeks, without any signs of a slowdown. The price recently hit its highest levels observed since June 2018, achieving $15.62. Over the last eight sessions, BNB has been moving within consolidation mode, ahead of further potential moves north.

BNB/USDT weekly chart.

BNB/USDT price action has formed a bullish pennant pattern during this recent easing away from the highs. The current technical structure is subject to another possible explosive breakout to the upside. Bulls have also been trying to break down a near-term chunky area of demand. The sellers are camped from $14-$15 range, which the price is currently flirting with at the time of writing.

Loom Network Supporting Binance Coin

The use cases for BNB token has observed exponential growth over the last six months, with another added to the list. Loom Network (LOOM), a blockchain-based ecosystem which facilitates the developments of online games and social media apps, has announced it will be supporting Binance Coin as a payment method.

BNB token is going to be accepted to cross their wide variety of applications on its PlasmasChina platform. The added support for BNB provides Loom Network dapps the option to expand beyond Ethereum (ETH) and card payments for transactions. The co-founder and CMO of Loom Network, James Duffy, commented on the announcement:

“We’re excited to be pushing things forward not only technologically (by integrating ERC20-based payments on a side chain), but also by injecting a bit more fun and lightheartedness into this space.”

Technical Review – BNB/USDT

BNB/USDT daily chart.

As detailed earlier, price action is currently moving within the confinements of a bullish pennant pattern formation. Bulls will likely be eying an extended breakout to the upside from this technical structure. Given the strong upside momentum that remains within the bulls favor, a continuation of the current trend makes sense.

Immediate resistance is observed at the upper acting trend line of the pattern, which is tracking at $15.40. A daily push and closure above this area will very likely see a fresh wave of buying pressure coming into action. BNB/USDT bulls will then be targeting the next area of interest, which can be seen tracking from $17.00-$17.50 range. The price last traded up at these heights on 22nd June, where it was met with massive sellers.

In terms of support, immediately this is observed at the lower acting trend line of the pennant, $14.44. Should the bears manage to force a breach, then sellers could pile in at quite some force. The next area of comfort not seen until the zone of the $12-$11 price range, where BNB last traded on 5th March.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

 Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.