BNB Breaks Descending Resistance Line, Targets Higher Levels
Binance Coin (BNB) witnessed a significant breakout as it surged above a descending resistance line, reaching a high of $599. However, the cryptocurrency has faced selling pressure, pulling back to around $567.30 to retest the breakout level.
Retest of Breakout Level: Crucial for BNB’s Next Move
When an asset like BNB breaks through a significant resistance level, it often retraces to test the new level as support. The recent pullback is crucial for validating the breakout and determining the cryptocurrency’s next move.
- A successful retest could lead to further gains towards $598.90 or $652.90
- Failure to hold the support level may result in a drop to $522.90
Technical Indicators Signal Mixed Directions
Key technical indicators for Binance Coin are currently sending mixed signals:
- The Relative Strength Index (RSI) is trending downward but remains above the neutral 50 line, indicating increasing selling pressure
- The Chaikin Money Flow (CMF) is also on a downward trend, with some traders withdrawing liquidity from the market
Outcome of Retest Will Impact Price Movements
The success or failure of BNB’s retest of the breakout level will play a pivotal role in determining its future price movements. Analysts are eyeing potential targets based on the outcome:
- Upside targets: $598.90 and $652.90 if the bullish trend continues
- Downside target: $522.90 if the support level is breached
Importance of Support Level and Ongoing Retest
BNB’s current situation underscores the importance of the ongoing retest of the breakout level. Traders should closely monitor price actions and technical indicators to gauge the cryptocurrency’s next move.
TVL on Binance Smart Chain Declines
The total value locked (TVL) on the Binance Smart Chain (BSC) network has decreased, indicating a potential increase in selling pressure on BNB. This development could influence the cryptocurrency’s price in the near term.
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