Binance Coin (BNB) Price Struggles to Surpass the $640 Supply Zone

With growing volatility in the market, BNB price witnesses an intraday pullback of 1.72%.

Binance Coin's price has pulled back slightly from the crucial supply zone at $640, leading to a steeper correction towards the 50% Fibonacci level at $595.

The 4-hour price chart shows Binance Coin experienced a rapid V-shaped recovery from the $531 mark. This rally also led to the breakout of the local resistance trendline.

However, after retesting the trendline, Binance Coin's price failed to break through the substantial supply zone at $640. The bullish struggle resulted in a brief consolidation phase, followed by a pullback.

Currently, the pullback is testing the 50% Fibonacci level at $670. Moreover, the bullish failure has resulted in a bearish crossover in the MACD and signal lines.

As the MACD forms its third consecutive negative histogram, the momentum indicator is signaling a sell signal. Still, the supertrend indicator is showing a bullish line at $601.9.

As Binance Coin forms its third bearish candle in a row, the lower price rejection reflects the 50% Fibonacci level absorbing the incoming supply. Yet, considering the increasing volatility in the market, the coin's price is likely to test the $600 psychological mark.

Binance Smart Chain Growth

Despite the growing potential for a pullback, the BNB Chain is experiencing remarkable growth. According to a recent tweet by Elja Boom, the founder of OKSE, we might be getting closer to BNB season.

"The Liquidity Pool Support Program is halfway through, some participants got listed on Binance."

As the chart shows, Binance Smart Chain recently surpassed Solana to become number one in 24-hour Decentralized Exchange trading volume. Furthermore, the Total Locked Value (TVL) has increased by 7% over the past seven days.

The TVL of Binance Smart Chain currently stands at $5.334 billion. With the recovery in the DeFi space, PancakeSwap, built on BSC, has become the #1 DEX by revenue in the past 24 hours, according to the timeframe of the tweet.

Moreover, bridging activity over Binance Smart Chain has increased significantly, mainly from Ethereum.

Binance Coin Price Target

As network growth is likely to fuel demand for Binance Coin, the market price could see significant upward momentum. However, the price action analysis suggests a breakout above the $640 supply zone is needed for bullish confirmation.

Beyond this, Fibonacci levels suggest price targets extending from $672 to $717. On the flip side, key support levels are at the 38.2% Fibonacci level around $595, and the 23.6% level at $570.