Binance Coin (BNB) Bulls Seek to Confirm Breakout
Binance Coin BNBUSD is having trouble consolidating its recent breakout above a descending line. The altcoin has witnessed a pullback since its peak at $599 on August 23.
If BNB successfully retests the breakout line and flips it into support, it will resume its uptrend.
Binance Coin Bulls Must Defend This Support Level
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.
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.
BNB's August 21 breakout above
its descending trendline will only be validated if it holds as support during the upcoming retest. If bulls successfully defend this level, the breakout will be confirmed, allowing BNB to resume its upward momentum.
In this scenario, BNB's price could climb toward $598.90, with potential to reach $652.90.
On the other hand, if the retest fails and the support doesn't hold, BNB would slip back below the descending trendline, likely dropping to $522,90. The outcome of this retest will be crucial for BNB's next move.
