BNB set to surge to $900 IF two key breakthroughs occur

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    Analyst predicted that if BNB can break through the current falling wedge and a significant resistance, it could reach a new peak.
    On-chain metrics, however, signal that these critical breaches necessary for a new ATH may be delayed.

As a seasoned crypto investor with a knack for spotting trends and interpreting market signals, I find myself cautiously optimistic about Binance Coin (BNB). While I agree with analyst Carl Runefelt’s prediction of a potential $900 ATH, the current on-chain metrics seem to suggest a slightly delayed realization of this bullish scenario.

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Currently, the price of Binance Coin (BNB) seems to be experiencing a temporary dip, with a 1.34% decrease in price and a 10.78% drop in trading volume. However, analysts view this pause as a typical sign preceding an anticipated surge.

Moreover, AMBCrypto has uncovered findings that might temporarily halt the advancement of BNB.

BNB set for $900 rally, pending two key conditions

According to crypto expert Carl Runefelt, it’s possible for BNB to hit an unprecedented peak of $900, but only if two significant factors occur based on his assessment: firstly, breaking free from the downward trend (falling wedge), and secondly, successfully surpassing a long-standing resistance barrier.

As a crypto investor, I’m buzzing with anticipation because it seems like one significant condition is almost within our grasp. Nikolaj Runefelt, who I greatly respect in the crypto sphere, recently expressed optimism, saying, “It feels like just a matter of time before we burst out of this 1-week Falling Wedge pattern!”

If the historic resistance levels from 2021 and 2024 are successfully broken due to significant buying activity, it’s expected that Binance Coin (BNB) will encounter no more impediments on its path towards reaching $900.

On the other hand, according to AMBCrypto, there could be minor setbacks in the breakout from the wedge pattern and the attempt to surpass the significant resistance level.

Retail trader activity impacts BNB

The attempts of some retail traders to push up the price trend for BNB have weakened and even reversed, as shown by significant decreases in Open Interest (OI) and an increase in market liquidations that disadvantage long positions.

As an analyst, I’ve noticed a decrease in open interest, which refers to the outstanding derivative contracts on BNB. Over the last 24 hours, futures and options open interest has declined by approximately 4.90% and 54.68%, respectively.

A continuous negative trend in OI suggests traders are closing positions, which could lead to decreased market liquidity and a potential weakening of current price trends.

Moreover, it appears that long traders have not found BNB liquidations beneficial in recent times. Over the last 24 hours, a sum of approximately $340,000 has been removed from the market through these liquidations, with long positions being responsible for around $272,210 of this total.

This pattern shows significant selling activity and pessimism among investors. If it continues, it might lead to a further drop in the price of BNB.

Falling TVL on BSC Network, yet optimism persists

On the Binance Smart Chain network, where BNB serves as the native currency, the total value locked (TVL) has dropped from approximately $4.616 billion on August 24th to around $4.533 billion as of now.

TVL, or Total Value Locked, quantifies the combined assets invested across various Decentralized Finance (DeFi) platforms, offering a gauge of the general well-being and user adoption for these DeFi initiatives.

A decrease in Total Value Locked (TVL) for platforms like BNB suggests that users are taking out more assets from DeFi platforms, which could lead to higher selling pressure and potential subsequent price decreases.

Realistic or not, here BNB’s market cap in BTC’s terms

Regarding the temporary obstacles, taking a wider perspective shows an upward trajectory; from August 5th onwards, Total Value Locked (TVL) has consistently increased, totaling approximately $1 billion.

The rising trend hints at a ray of optimism, implying that the BNB price could surge, possibly managing to surmount significant challenges in the short term.

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2024-08-27 10:32