Binance Coin (BNB) has recently shown signs of stagnation, with its price slipping by 1.34% and trading volume experiencing a notable 10.78% decrease. This lull, however, might just be the calm before a significant storm, as analysts suggest a substantial rally could be on the horizon.
Analyst Predictions – A $900 Surge For BNB?
Crypto analyst Carl Runefelt has set an ambitious target for Binance Coin, predicting it could skyrocket to $900, provided it meets two crucial conditions. According to Runefelt, BNB needs to overcome the current falling wedge pattern and break through a historic resistance line. “It’s only a matter of time before we break out of this 1W Falling Wedge!” Runefelt optimistically notes.
The falling wedge, a bullish technical pattern, often signals a potential price breakout. Once BNB surpasses the resistance level established during its previous all-time highs in 2021 and 2024, a substantial surge could follow, potentially propelling the coin to its $900 target.
Challenges and Setbacks
Despite the optimistic forecast, recent developments suggest that BNB’s path to $900 may face some hurdles. AMBCrypto has highlighted potential delays in BNB’s breakout from the falling wedge pattern and its struggle with significant resistance levels. Such delays could impact the anticipated rally, putting the $900 target on hold for now.
Retail trader activity has been another area of concern. Efforts to drive a bullish trend in BNB have been less effective lately, as evidenced by declines in Open Interest (OI) and unfavorable market liquidations. Over the past 24 hours, Open Interest in BNB futures and options has dropped by 4.90% and 54.68%, respectively. This decrease reflects a trend of traders closing positions, which may result in reduced market liquidity and further strain on BNB’s price performance.
Moreover, BNB has seen $340,000 in liquidations, with $272,210 of this amount coming from long positions. This strong selling pressure indicates a bearish sentiment among traders, which could further dampen BNB’s short-term prospects.
TVL on BSC Network – A Mixed Bag
The total value locked (TVL) on the Binance Smart Chain (BSC) network has also experienced a dip, from $4.616 billion on August 24th to $4.533 billion currently. TVL, a key indicator of DeFi health, reflects asset withdrawals and may signal increased selling pressure on BNB.
Also Read: Crypto Analyst Del Crypto Predicts 3,500% Surge For BONE With Potential Binance Listing
However, a broader perspective reveals a positive trend. Since August 5th, TVL on the BSC network has risen by nearly $1 billion, suggesting that despite short-term challenges, BNB’s potential for a rally remains intact.
While BNB’s recent performance has shown signs of slowing down, analysts like Carl Runefelt remain hopeful for a significant rally, provided key conditions are met. Despite current setbacks, including reduced retail trader activity and a decline in TVL, the broader positive trend in the BSC network offers a glimmer of hope. As BNB navigates these challenges, all eyes will be on its ability to overcome resistance and realize its $900 potential.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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