- Binance Coin (BNB) faces strong resistance at $640, with a potential breakout targeting $672 if bullish momentum persists.
- Binance Smart Chain’s growing TVL and DEX dominance could drive increased demand for BNB, supporting a possible price surge.
Binance Coin (BNB) is facing strong resistance at the $640 supply zone, raising questions about whether a breakout rally to $672 is on the horizon. With increasing market volatility, BNB has pulled back 1.72% intraday, currently trading at $617, while recording an 11.39% gain over the past week.
Despite the short-term recovery, the price trend suggests the possibility of a deeper correction. Could this pullback push Binance Coin’s price down to $570, or is another rally imminent?
Binance Coin Faces Resistance at $640
BNB’s 4-hour price chart highlights a sharp V-shaped recovery from the $531 level, breaking past a local resistance trendline. However, bullish momentum has struggled at the $640 supply zone, leading to consolidation followed by a pullback.
The recent downturn in Binance Coin is currently testing the 50% Fibonacci level at $670. A bearish crossover in the MACD and signal lines, along with negative histograms, suggests weakening momentum. However, the Supertrend indicator maintains a bullish stance, holding support at $601.9.
Despite forming its third consecutive bearish candle, lower price rejection indicates that the 50% Fibonacci level is absorbing the selling pressure. However, if volatility persists, BNB could retest the $600 psychological support before a potential rebound.
Binance Smart Chain Growth Fuels Optimism
While BNB faces short-term selling pressure, the Binance Smart Chain (BSC) continues to experience significant growth. A recent report from Elja Boom, founder of OKSE, suggests that BNB’s bullish season may be approaching.
Notably, Binance Smart Chain has overtaken Solana in 24-hour Decentralized Exchange (DEX) trading volume, securing the top position. Additionally, the network’s Total Value Locked (TVL) has surged by 7% over the past week, now standing at $5.334 billion.
Further boosting BNB’s outlook, PancakeSwap, a leading BSC-based DEX, has emerged as the #1 revenue-generating DEX in the last 24 hours. Moreover, bridging activity between Ethereum and Binance Smart Chain has seen a substantial increase, further strengthening network demand.
BNB Price Outlook: Breakout or Correction?
The growing adoption of Binance Smart Chain is likely to fuel demand for Binance Coin, but a breakout above $640 is crucial for bullish confirmation. A successful breakout could open the doors for price targets at $672 and $717, based on Fibonacci extensions.
However, if BNB fails to surpass $640, it risks further downside, with key support levels at $595 (38.2% Fibonacci) and $570 (23.6% Fibonacci).
Will BNB Breakout or Correct?
With BNB at a critical juncture, traders should watch for a decisive move above $640 or a breakdown toward $600-$570 levels. Market volatility remains high, making risk management essential for those looking to capitalize on the next move.
