BNB formed a bull flag pattern, will the price continue to recover

BNB, the native token of BNB Chain, began its recovery on January 26, rising 3% to reclaim $300. Although momentum remains weak, the current recovery is supported by network activity mesh is increasing.

New launchpad product on Binance and increase in DApp activity

A large portion of the BNB token's trading volume comes from reduced trading fees as well as exclusive launchpad offers and services from Binance.
A recently launched “dual investment” product from Binance could add to BNB's volume, which has exceeded $998 million in the past 24 hours.
One way to determine the health of the blockchain ecosystem is to compare how the network is performing compared to competing chains.

Top blockchains by 7-day DApps volume | Source: DappRadar

Ethereum and its layer-2 scaling solutions remain the leader in DApp volume, accumulating over $31.73 billion over the past seven days, with Ethereum NFT trading volume at $226 million.
In contrast, BNB Chain has amassed $3.82 billion in DApp volume, but its NFT trading volume increased 11% to $864.93 million.
However, when taking into account unique active addresses (UAW), BNB Chain is leading, with 2 million UAW, far ahead of Ethereum with 359,380.
BNB Chain's 6.4% growth in the number of DApp participating addresses in 7 days and high trading volume may be the reason for BNB's increasing total asset value locked (TVL).
Data from DefiLlama shows that BNB Chain's TVL increased steadily from mid-December 2023, when the price began to recover and reached a peak of 3.73 billion USD on January 18. Although this metric decreased slightly over the past few days, it began to increase again on January 25, showing users' trust in blockchain.
TVL of BNB Chain | Source: DefiLama

Is BNB's bull flag a sign of recovery?

After reaching an eight-month high of $340 on December 28, 2023, BNB price has fallen again as sellers take profits and the cryptocurrency market corrects.
Regardless, BNB is forming a bullish flag pattern on the daily chart, hinting at a continuation of the uptrend.
BNB bulls face resistance around the flag's upper boundary at $316. A successful daily close above this level would signal a possible breakout from the pattern, with a target targeting $450, possibly currently an increase of 48% compared to the current price.

BNB/USD Chart – 1 Day | Source: TradingView

The 50-day EMA, 100-day EMA, 200-day EMA and relative strength index (RSI) are all pointing upward, showing that market conditions still favor an uptrend. In which RSI increased from 40 to 50, showing that bulls are buying at lower prices.
On the other hand, the bears could drag the price to the lower boundary of the flag around $282, which is also the first line of defense for BNB. Additional supports can emerge at the 100-day EMA at $271 and the major support at $250.