BNB is struggling to solidify its recent rise above a descending line. The altcoin saw a pullback since its peak of $599 on August 23. If BNB successfully retests and turns the rising line into support, it will continue its uptrend. On August 21, the altcoin broke above the descending line it had been trading below since June 6. Its price quickly rose to $599 on August 23.
What is Happening with BNB?
Since then, buyer fatigue has started, creating downward pressure on the BNB price. At press time, the altcoin is at $567.30, trending towards the rising line and attempting to retest it. Typically, when an asset’s price breaks above a resistance trend line, it may experience a pullback to retest the new level.
This retest is crucial because it helps investors confirm the strength of the breakout. If the price holds successfully at the breakout level, it confirms the validity of the uptrend and indicates the likelihood of its continuation. Some of BNB’s key momentum indicators are trending towards the breakout line, confirming a decrease in demand for the altcoin. For example, BNB’s Relative Strength Index (RSI) is in a downtrend as of the writing of this article. Despite staying above the 50-neutral line, the indicator’s decline signals increasing selling pressure.
If selling pressure gains momentum, it might be challenging to hold the breakout level during the retest. 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 withdrawing liquidity from the market.
BNB Chart Analysis
BNB’s breakout above the descending trend line on August 21 will only be confirmed if it remains as support during the upcoming retest. If the bulls successfully defend this level, the breakout will be confirmed, allowing BNB to maintain 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 support does not hold, BNB will slide back below the descending trend line and likely fall to $522.90. The outcome of this retest will be crucial for BNB’s next move.
