Binance Coin (BNB) Faces Retest After Breaking Above Descending Resistance Line

This technical breakout propelled BNB to a high of $599 just two days later. However, since reaching this peak, the cryptocurrency has faced selling pressure

Binance Coin (BNB) recently experienced a technical breakout by crossing above a descending resistance line that had been forming since June 6, 2024. This breakout pushed BNB to a high of $599 just two days later.

However, after reaching this peak, the cryptocurrency encountered selling pressure, leading to a drop to around $567.30. This pullback is part of the natural process following a breakout.

As an asset like BNB breaks through a significant resistance level, it often experiences a retracement to test the new level as support. This retest is crucial for determining the strength of the breakout and whether the uptrend will continue.

Binance Coin is currently retesting the breakout line, which is now acting as support. A successful retest would confirm the validity of the breakout, suggesting that BNB could continue its uptrend.

If BNB's price manages to stabilize and hold above this level, it could signal the continuation of its bullish trajectory. On the other hand, failure to maintain this support could indicate that the breakout was not fully established.

Key technical indicators are presenting mixed signals for Binance Coin. The Relative Strength Index (RSI) is trending down, though it remains above the neutral 50 line. Its decline suggests increasing selling pressure. If the RSI continues to fall, it could signal further downward momentum for BNB.

The Chaikin Money Flow (CMF) is also showing a downward trend. While the CMF is still above zero, its current level of 0.18 indicates that some traders are withdrawing liquidity from the market. This could further pressure BNB's price if the trend persists.

The result of the current retest will be crucial for Binance Coin's future price movements. If BNB can successfully defend the support level and continue to build momentum, it could target higher price levels.

Analysts are watching for a potential rise towards $598.90, with the possibility of reaching $652.90 if the bullish trend remains intact.

Conversely, if the retest fails and BNB falls below the support level, it might drop to $522.90. This would indicate a possible breakdown of the breakout and a return to previous lower price ranges.

BNB's current situation highlights the importance of the ongoing retest of the breakout line. The success or failure of this retest will play a significant role in determining BNB's next price movement. Traders should watch closely for signs of either continued bullish momentum or a reversal to lower levels.

The mixed signals from technical indicators, combined with recent price actions, suggest that BNB's path forward will be shaped by how well it can hold above the critical support level. If the support holds, BNB could see further gains; if not, a decline to previous levels may be on the horizon.

The total value locked (TVL) on the Binance Smart Chain (BSC) network has decreased from $4.616 billion on August 24th to $4.533 billion at press time. This decline in TVL indicates that more assets are being withdrawn from DeFi protocols on the BSC network, which could potentially increase selling pressure on BNB.

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