Binance Coin Price Struggles at $640

Will the growing BSC network fuel the next breakout rally to $672?

With growing volatility in the market, BNB price witnesses an intraday pullback of 1.72%. Currently, the BNB token trades at a market price of $617 and records a 7-day return of 11.39%.

Despite the short-term recovery, the BNB token price trend warns of a steeper correction. Will this pullback result in a downfalling Binance Coin price to $570? Let’s find out.

Price Action Analysis

The 4-hour price chart shows Binance Coin’s price showcasing a quick V-shift reversal from the $531 level, surpassing the local resistance trendline to initiate a breakout rally.

However, post-retest, the price fails to surpass the crucial supply zone at $640, experiencing a consolidation phase followed by a pullback. Currently, this pullback tests the 50% Fibonacci level at $670. The bullish failure has led to a bearish crossover in the MACD and signal lines, triggering a sell signal from the momentum indicator.

The supertrend indicator maintains a bullish line at $601.9. With the formation of a third consecutive bearish candle, the lower price rejection suggests the 50% Fibonacci level is absorbing supply. Given the market’s volatility, the coin’s price may test the $600 psychological mark.

Binance Smart Chain Growth

Despite the fear of a pullback, the BNB Chain is witnessing significant growth. A recent tweet by Elja Boom, the founder of OKSE, highlights:
> $BNB season is here? 👀
> – #BSC ranks #1 in 24-hour DEX trading volume.
> – TVL +7% WoW.
> – PancakeSwap is the #1 DEX by revenue in the last 24 hours
> – Bridging to #BSC also increased.

Binance Smart Chain recently surpassed Solana to rank as number one in 24-hour Decentralized Exchange trading volume. The Total Locked Value (TVL) has increased by 7% week-over-week, now standing at $5.334 billion. PancakeSwap has emerged as the #1 DEX by revenue over the last 24 hours. Bridging activity to Binance Smart Chain has notably increased, primarily from Ethereum.

Price Targets

As network growth is likely to boost demand for Binance Coin, significant upward momentum could be expected. However, breakout confirmation above the $640 supply zone is crucial. Fibonacci levels suggest price targets could extend from $672 to $717. Key support levels lie at the 38.2% Fibonacci level around $595 and the 23.6% level at $570.