Binance Coin price faces further decline as bearish flag pattern forms

Binance Coin (CRYPTO:BNB) is on the brink of another potential decline, following a 3% drop in the past 24 hours. 

This recent decrease in value could signal the continuation of a downward trend that began earlier this month after BNB experienced a nearly 20% surge post the August 5 market crash.

BNB is showing signs of forming a bearish flag on its daily chart. 

This technical pattern often indicates that the recent downswing could accelerate. 

A bearish flag is characterised by a downtrend that connects the highs and lows of a short-term uptrend within a parallel channel, often signaling that further losses are imminent.

The Money Flow Index (MFI), which tracks buying and selling pressure by analysing price and volume data, supports this bearish outlook. 

The MFI is currently aligning with BNB’s downward price trend, suggesting that the selling pressure could continue and a bullish reversal is unlikely in the near term.

According to the Fibonacci retracement indicator, which identifies support and resistance levels, BNB's price could drop to $526, where the 61.8% golden pocket ratio is positioned. 

If selling pressure intensifies, the price might even fall below the critical $500 support level, potentially reaching as low as $472.

However, there is a possibility that BNB could bounce back. 

If the price manages to break the $500 psychological resistance, the altcoin could rally towards $564 or even as high as $601.90.

The next few days will be crucial for BNB as traders watch to see if the bearish pattern will lead to further losses or if the cryptocurrency will find support and recover.

At the time of reporting, the BNB price was $532.55.