Binance Coin (BNB), the native token of the Binance cryptocurrency exchange, could be setting up for a price breakout in the near future, according to a recent technical analysis.
Cryptocurrency trader Clifton FX highlighted a bull flag pattern that has formed on the BNB four-hour price chart, typically an indicator that an asset is consolidating before a continuation of an uptrend.
Bullish Flag Formation in 4h Timeframe…
— Clifton Fx (@clifton_ideas) January 12, 2024
Clifton believes that if BNB can push through upside resistance around the $310 level, it opens up the possibility of renewed bullish momentum propelling the price towards a test of the $329 and even $340 levels, where further overhead resistance resides. However, BNB has struggled to gain traction in recent weeks and months amidst high volatility in the broader crypto space.
BNB has been rangebound for a long time
Despite showcasing some strength earlier this year with a 25% price jump at one stage, BNB has generally been rangebound between about $238 and $340 for an extended period of time now, according to price data. This sideways consolidation trading range has reflected fading buyer and seller conviction around current levels.
Technical analysts view it as a positive sign that BNB’s relative strength index (RSI), a momentum indicator, has perked up from oversold territory and is now reflecting more neutral positioning. This signals indecision in the market but also shows conditions are stabilizing, which could set the stage for a more decisive price trend.
If BNB bulls can maintain prices above the $310 resistance highlighted, then a test of the $329 and $340 levels looks increasingly possible, according to Clifton’s bull flag breakout thesis.
However, failure to close above $310 convincingly could mean the continuation of rangebound conditions in the sessions ahead.