The price of Binance Coin (BNB) has experienced a significant technical rebound after confirming a bullish Swing Failure Pattern (SFP) at recent lows, triggering a sharp recovery from a period of cooling and sell pressure. This pattern, which invalidated downside liquidity, has shifted short-term sentiment toward the upside as buyers re-enter the market.
However, the rally now approaches a critical technical resistance cluster near $635. This level aligns with the 0.618 Fibonacci retracement of the prior decline and the value area high from the volume profile. A sustained breakout and close above this zone could open a path toward the next high timeframe resistance near $659, signaling a potential trend continuation.
This technical development occurs against a backdrop of recent price weakness. Prior to the rebound, BNB had cooled off from highs near the $1,000 region, trading around $609 and showing fading momentum. On-chain and derivatives data indicated overheating in both spot and futures markets had subsided, leading to a phase of digestion or distribution. The Chaikin Money Flow (CMF) also spiked toward the 0.20 region, a zone historically associated with short-term overbought conditions for BNB.
Adding a layer of regulatory uncertainty, U.S. Senator Richard Blumenthal has launched a formal Senate inquiry into Binance. This follows reports alleging the exchange processed nearly $1.7 billion in transactions linked to sanctioned Iranian entities and Russia's so-called shadow fleet. Binance has defended its compliance framework, stating recent media coverage inaccurately portrayed its regulatory oversight.
If BNB fails to reclaim the $635 resistance, the outlook could shift quickly, potentially keeping the price range-bound between the $659 resistance and a key support zone between $400 and $445. The market's next directional move hinges on whether bulls can decisively break through the current resistance level.
