#Binance Coin bulls have been lethargic, resulting in a worrying drop below the critical $240 support level. This downward trend shows that negative forces may be taking control of the market in the short future.
#BNB is now forming an interesting chart pattern known as the inverted flag. BNB's price has dropped 0.2% in the last 24 hours and 2.1% in the last seven days due to current market volatility. According to cryptocurrency market tracker CoinGecko, the coin is presently selling at $237.
Since the previous high of $261.9 seems to be fading in memory, investors are keeping a close eye on this bearish continuation pattern and its possible consequences.
The inverted flag pattern is a technical chart pattern that indicates the continuation of a downturn. When the price of an asset (the flagpole) falls sharply, it is followed by a short period of consolidation, depicted by a downward-sloping channel (the flag).
This pattern indicates that the price will most likely break the lower support trendline after a brief respite rally and resume its downward trend.
The BNB price has lost 2.0% in the previous week and is nearing the lower support trendline of the inverted flag pattern. When BNB's bearish continuation pattern takes hold, the odds of the market breaking through this dynamic support increase. A daily candle falling below this trendline indicates that the downward trend is likely to resume.
But, there is cause for optimism for $BNB owners as hints of a possible turnaround appear. If the coin price maintains its resistance and begins to recover at the bottom support trendline, it indicates that buyers are aggressively protecting this crucial level.
Such a reversal might extend the present relief rally and bring the BNB price back toward the overhead trendline, which is now at $265. A #bullishflag break of this resistance level might falsify the bearish argument and usher in a long-term rebound for BNB.
Investors should exercise caution as the inverted flag pattern develops and keep a careful eye on price movement around the lower support trendline. A break below this level would confirm the bearish continuation pattern, forcing some investors to contemplate trimming losses or taking a defensive attitude.
A clear recovery from the support, on the other hand, might give a buying opportunity for investors expecting a reversal.
