BNB has been struggling to consolidate its recent rally above a descending trendline. The altcoin has seen a pullback since its peak of $599 on August 23. If BNB successfully retests the uptrend and turns it into support, it will continue its uptrend. On August 21, the altcoin broke above the descending trendline it had been trading below since June 6. Its price quickly rose to $599 on August 23.
What’s Happening on the BNB Front?
Since this process, buyer fatigue has started and BNB This has put downward pressure on its price. At $567.30 at press time, the altcoin is trending towards the uptrend line and is attempting to retest it. Typically when the price of an asset breaks above a trend line that is forming resistance, it may experience a pullback to retest the level it just broke through. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
This retest is important because it helps traders confirm the strength of the breakout. If the price successfully holds the breakout level, it confirms the validity of the rally and indicates the possibility of a new uptrend continuing. Some of BNB’s key momentum indicators are trending towards the breakout line, confirming that demand for the altcoin is decreasing. For example, BNB’s Relative Strength Index (RSI) As of the date of writing, it is in a downtrend. Although it remains above the 50-neutral line, the indicator’s decline indicates increasing selling pressure.
If the selling pressure gains momentum, it may be difficult to hold the breakout level when a retest occurs. Similarly, the asset’s Chaikin Money Flow (CMF), which measures the flow of money in and out of the asset, is in a downtrend at 0.18. Although still above zero, BNB’s CMF data signals that some investors are removing liquidity from the market.
BNB Chart Analysis
BNB’s breakout above the descending trendline on August 21 will only be confirmed if it remains support during the upcoming retest. If the bulls successfully defend this level, the breakout will be confirmed and could allow BNB to continue its upward momentum.
In this scenario, BNB’s price could climb towards $598.90 and potentially reach $652.90. On the other hand, if the retest fails and the support does not hold, BNB will slide back below the descending trendline and possibly drop to $522.90. The outcome of this retest will be crucial for BNB’s next move.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
