Binance Coin (BNB) is currently facing difficulties consolidating its recent breakout above a descending trendline. The altcoin experienced a pullback after reaching a peak at $599 on August 23.
If BNB successfully retests the breakout line and flips it into support, it will likely resume its upward trajectory.
On August 21, BNB broke above the descending line it had been trading under since June 6, rallying to $599 by August 23. However, exhaustion among buyers has since set in, causing downward pressure on the coin's price, which is now $567.30.
The importance of retesting the breakout line cannot be overstated. Successfully holding this level as support would validate the breakout and indicate a continued uptrend.
BNB’s Relative Strength Index (RSI) is currently trending downwards but remains above the 50-neutral line, hinting at increasing selling pressure. Likewise, the Chaikin Money Flow (CMF), another key indicator, is in a downward trend, indicating that traders are removing liquidity from the market.
If the breakout line holds as support during the retest, BNB is poised to climb towards $598.90, with the potential to reach $652.90. However, failure to hold this level could see BNB slipping back below the trendline, possibly dropping to $522.90.
The upcoming retest will be crucial in determining the next move for BNB.
