Will BNB Price Go Up Further After Rallying 25 Percent?

BNB (BNB) has emerged as one of the best rebounders in the ongoing crypto market recovery following the Aug. 5 bloodbath. The Binance-linked cryptocurrency has been up by over 25% ever since, raising questions about whether it has enough momentum to continue its upside run in the remainder of August.

Will BNB Price Go Up in August?

The short-term technical outlook for BNB looks skewed toward bears, thanks to the formation of a classic bearish reversal indicator.

Dubbed rising wedge, the pattern develops when the price trends higher inside a range defined by two ascending, converging trendlines. It typically resolves when the price breaks below the lower trendline and, as a rule of technical analysis, falls by as much as the maximum distance between the upper and the lower trendline.

In the best-case scenario, considering the rising wedge, BNB’s price can rally toward the pattern’s apex, where its two trendlines converge at around $540. But, its likelihood of a breakdown will remain high throughout August.

For instance, a break below the wedge’s lower trendline, when measured from the apex of $540, risks crashing the price toward $464, down 8.58% from the current price levels.

Meanwhile, a breakdown ahead of reaching the wedge’s apex—for instance, at the current support of around $500—could have the BNB price dip toward $434. In other words, a circa 15% dip from the current price levels by August.

Conversely, a break above the wedge’s upper trendline will likely invalidate the bearish setup. Should a breakout occur, the BNB price’s upside target looks to be around its 200-4h exponential moving average (200-4h EMA; the blue wave) at around $550.

BNB Derivatives Data Show Weakness

The open interest (OI) in the BNB Futures has declined substantially in recent months—from $1.12 billion in June to $471.57 million as of Aug. 8. However, its funding rates have been largely positive during the period, albeit too low currently at 0.0015% every eight hours.

A significant decline in OI often reflects a waning interest in the asset, potentially signaling that traders are closing their positions due to uncertainty or expecting lower volatility in the future.

The fact that funding rates have been largely positive indicates that the demand for long positions has generally outweighed the demand for short positions. However, lower rates show that the bullish sentiment is not strong enough to drive significant buying pressure.

So, if the funding rates remain positive and start to increase, it might indicate a resurgence in bullish sentiment, potentially leading to a price recovery.