ON AUGUST 21,THE ALTCOIN BROKE ABOVE THE DESCENDING LINE BELOW ..which it had traded since June 6. Its price quickly rallied to $599 by August 23.
However, buyers’ exhaustion has set in since then, putting downward pressure on BNB’s price. At $567.30 at press time, the altcoin is trending toward the breakout line, attempting to retest it.
Usually, when an asset’s price breaks above a trend line that has formed resistance, it may witness a pullback to “retest” the level it just broke through.
bnb descending line BNB Price Analysis...
This retest is important because it helps traders confirm the strength of the breakout. If the price successfully holds at the breakout level (now acting as support in BNB’s case), it confirms the breakout’s validity, suggesting that the new uptrend is likely to continue.
Some of BNB’s key momentum indicators confirm the weakening demand for the altcoin as it trends toward the breakout line. For example, BNB’s Relative Strength Index (RSI) is in a downtrend as of this writing.
Although it remains above the 50-neutral line, the indicator’s decline hints at rising selling pressure. If selling pressure gains momentum, the breakout level may be hard to hold when the retest occurs.