Binance Coin price to give bullish breakout another go

Binance Coin price is likely to provide sidelined buyers another opportunity to accumulate.
Investors need to be careful in buying BNB dips due to the uncertain market outlook.
A breakdown of the $596.5 support level will invalidate the bullish thesis.

Binance Coin (BNB) price exhaustion is likely to trigger a short-term correction. If the market outlook improves then the incoming pullback will be a good place to buy BNB on the dips.

Also read: Binance Coin pice poised to break all-time high after recent surge

Binance Coin price takes another shot

Binance Coin price broke out of the ascending triangle on June 4 and was due to retest the theoretical forecasted target of $775 after a 21% rally. However, the impulsive move stopped after a 13% rally that led to the local top formation of $721.8. This lack of momentum is likely to result in a 7% retracement that retests the ascending triangle’s base at $635.2.

Depending on how Binance Coin price reacts to the aforementioned level, investors can make their own decisions. A bounce above $635.2 will show that the buyers are in it for the long haul and are defending this key barrier. In such a case, BNB could embark on a bullish journey and target the theoretical forecasted target of $775.5.

While BNB retests the $635.2 support level, the Relative Strength Index also needs to hold above its mean level of 50. This development would further reinforce the optimistic outlook and help Binance Coin move toward $775.5.

BNB/USDT 1-day chart

On the contrary, if the market outlook continues to deteriorate, then Binance Coin price is unlikely to hold above the $635.2 support level. A reentry into the ascending triangle setup would invalidate it.

However, if Binance Coin price flips $596 into a resistance level, it would create a lower low and invalidate the bullish market structure. Such development could see BNB nearly 6% and tag the $562.6 support level.

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