Binance Coin (BNB) Set for $900 Rally, Pending Two Key Conditions

While Binance Coin's (BNB) price movement has recently slowed, showing a 1.34% decrease in price and a 10.78% decrease in trading volume

Binance Coin [BNB] showed signs of slowing down recently, with a 1.34% price decrease and a 10.78% drop in trading volume. However, analysts saw this lull as a common precursor to an upcoming rally.

Meanwhile, AMBCrypto has discovered some insights that could potentially stall BNB’s progress further.

BNB set for $900 rally, pending two key conditions

Crypto analyst Carl Runefelt anticipated that BNB could reach a new all-time high of $900, depending on two major conditions that his analysis pointed out. These conditions included overcoming the falling wedge and breaching a historic resistance line.

Of these conditions, one was reportedly close to being met. Runefelt remained optimistic, stating, “It’s only a matter of time before we break out of this 1W Falling Wedge!”

Source: X

Once the historic resistance formed at previous all-time highs in 2021 and 2024 was surpassed, likely through substantial buying pressure, BNB faced no further obstacles to trading at $900.

However, AMBCrypto noted that the breakout from the wedge pattern and the challenge of the major resistance might experience slight delays.

Retail trader activity impacts BNB

Some retail traders’ efforts to drive a bullish trend in BNB were diminishing and being countered, as evidenced by notable declines in both Open Interest (OI) and market liquidations unfavorable to long positions.

Open Interest, which represented the total number of unsettled derivative contracts on BNB, saw a downturn. At the moment, futures and options OI over the past 24 hours were down by 4.90% and 54.68%, respectively.

Source: CoinglassA continuous negative trend in OI suggested that traders were closing positions, which could lead to decreased market liquidity and a potential weakening of current price trends.

Furthermore, BNB liquidations were not favorable for long traders. In the past 24 hours, $340 thousand had been liquidated from the market, with long positions accounting for $272.21 thousand of that total.

This pattern indicated strong selling pressure and negative market sentiment. If sustained, it could further depress BNB prices.

Falling TVL on BSC Network, yet optimism persists

The total value locked (TVL) on the Binance Smart Chain (BSC) network, where BNB was native, decreased from $4.616 billion on August 24th to $4.533 billion at press time.

TVL measured the total assets deposited in decentralized finance (DeFi) protocols and reflected the overall health and adoption of DeFi projects.

A decline in TVL, as observed with BNB, indicated that more assets were being withdrawn from DeFi protocols, suggesting an increase in selling pressure and concurrent price drops.

Source: DefilLama

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

Despite the short-term challenges, a broader view revealed a positive trend. Since August 5th, the TVL had steadily risen, adding nearly $1 billion.

This upward trajectory provided a glimmer of hope and suggested that the BNB price may be set for a rally, potentially overcoming major obstacles in the near term.

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