BNB price was relatively unchanged today, June 27, as sentiment in the crypto market worsened. Binance Coin was trading at $640, up by 7.50% from its lowest level this week. Its growing stablecoin addresses, decentralized exchange volume, and bullish pennant point to more upside.
BNB Price Technical Analysis as a Bullish Pennant Forms
The four-four chart indicates a potential BNB price recovery as it has formed a bullish pennant chart pattern. This pattern comprises a vertical line resembling a flagpole and a consolidation with a triangle formation.
The flagpole started to form on June 2023 when it plunged to a low of $602. It then peaked at $652, its highest level on June 25, giving it a height of $50. It is now forming the pennant section, with the two lines of the triangle nearing their confluence level.
The pennant is forming slightly below an important resistance level, which connects the highest swings since May 29. Therefore, the Binance Coin price will likely have a bullish breakout in the next few days.
The price target is estimated by adding the height, in this case $50, with the potential breakout point, which is about $645. This gives the potential target at $699, which corresponds with the highest point in May this year.
The bullish case is also supported by the 50-period moving average, which is slightly below the current level. Similarly, the Relative Strength Index (RSI) and the Stochastic Oscillator have pointed upwards.
A drop below the support at $600, its lowest point on June 5, will invalidate the bullish Binance Coin price forecast.
DEX Dominance and Stablecoin Growth Continues
A potential catalyst for the BNB price is the ongoing market share in the decentralized exchange industry, where PancakeSwap is dominating.
DeFi Llama data shows that the BNB Smart Chain is now handling more volume than Solana and Ethereum, combined. Its 24-hour volume jumped to $5.95 billion, much higher than Ethereum’s $2.17 billion and $1.66 billion, respectively.
This growth increased the 30-day volume to $159 billion, surpassing Ethereum’s $61 billion and $64 billion. This growth has been driven by PancakeSwap, which handled over $135 billion in the last 30 days. Uniswap processed $19 billion in the same period.
More data shows that the BNB Chain is becoming a big player in the booming stablecoin industry. Its stablecoin addresses jumped by 17% in the last 30 days to over 12.1 million, while the supply rose by 2.4% to $10.5 billion. Its monthly transaction volume stood at over $342 billion.
Summary
BNB price has consolidated this week as the recent bullish momentum faded. On the positive side, it has formed a bullish pennant pattern, pointing to more gains as its dominance in the DEX and stablecoin growth continues.
