• Binance Coin (BNB) is consolidating above the crucial support at $240, which may be a prelude to a 45% bullish move to highs past $350.
• BNB has formed a key bullish pattern, a falling wedge, waiting for confirmation, which could happen before 2022 fades out.
• Selected technical indicators reveal that the trend is about to change course, possibly before 2022 fades into the sunset.
Binance Coin (BNB) is experiencing a period of consolidation above a critical support level of $240 which could lead to a massive 45% bull run past $350. The native exchange token has formed a key bullish pattern, a falling wedge, which is waiting to be confirmed. The trend looks set to change course before 2022 draws to a close, according to selected technical indicators.
Over the past week, BNB has been attempting to repair its long, dismal performance streak in 2022 but has only managed to generate a cumulative loss of 3%. BNB is the fifth-largest cryptocurrency with a market capitalization of $17 billion. Over $5.5 billion in trading volume was recorded in the last 24 hours across exchanges.
In early December, Binance Coin price suffered a plunge, retesting the support at $220 for the first time since July, followed by a reflex recovery to $254. Now, BNB is consolidating above the critical support at $240 while bulls and bears are in a fierce tug of war. A bullish outcome is likely, especially with the formation of a falling wedge pattern, as illustrated on the daily timeframe chart.
Wedges appearing in the price chart signify a potential pause in the current trend. A falling wedge is a bullish chart pattern created by connecting two sloping trend lines, one linking BNB’s lower troughs and peaks. As a reversal pattern, the falling wedge indicates a shift from bearish to bullish. When the resistance line at the peak of the wedge is broken, the price is expected to surge.
At the time of writing, BNB is trading at $244 and is inching closer to the resistance line of the wedge pattern. If the resistance line is broken, BNB could start a significant bull run past $350. On the other hand, if the support line at $240 is broken, the price could drop to $220. Traders should be aware of these possibilities before making any moves.