In the best-case scenario, given the rising wedge, BNB price may rise towards the pattern’s apex, where its two trendlines converge at around $540. However, the probability of a breakdown will remain high throughout August.
For example, a break below the wedge’s lower trendline (measured from the apex at $540) risks the price crashing to $464, a decline of 8.58% from the current price level.
A breakdown before reaching the top of the wedge – for example, at the current support of around $500 – could send the BNB price down to $434. In other words, a drop of about 15% from the current price level by August.
Conversely, a break above the upper trendline of the wedge is likely to invalidate the bearish setup. Should a breakout occur, the upside objective of BNB price appears to be around $550 at its 200 4-hour exponential moving average (200 4-hour EMA; the blue wave).
BNB derivatives data shows weakness
Open interest (OI) in BNB futures has declined significantly in recent months – from $1.12 billion in June to $471.57 million on August 8. However, funding rates have been largely positive during this period, although currently too low at 0.0015% every eight hours.
