BNB Price Forecast as Open Interest Nears 3-Month High After Pasteur Hard Fork

Binance Coin (BNB) price is up by 2.59% today, August 27, to trade at $713 at the time of writing. These gains come two days after BNB Chain completed the Pasteur hard fork on August 25. The network upgrade also coincides with an increase in BNB’s open interest to the highest since early June.

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BNB Chain Completes Pasteur Hard Fork

The Pasteur hard fork that went live on the BNB Chain introduced three improvements to the network: BEP-682, BEP-695, and BED-675.

The first improvement, BEP-682, fixed cross-chain vulnerabilities to ensure that the vote of one validator cannot be duplicated so that a threat actor cannot fake that they have a supermajority.

BEP-695 also improved governance security so that old keys are stripped of their rights to ensure they cannot be reused maliciously, while the BEP-675 upgrade increased the number of transactions in one block.

The Pasteur hard fork also increased the speed of the BNB Chain network by 88% from 1,237 transactions per second (TPS) to 2,324.

Since this upgrade occurred on August 25, the BNB price has increased from $688 to $713 at the time of writing after the improvements boosted market sentiment, and Bitcoin’s move to $80,000 supported the uptrend.

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BNB’s Open Interest Soars to Near 3-Month High

Data from CoinGlass shows that the open interest on BNB has increased to $1.14 billion, with this being the highest OI reading since June 2. The OI’s rise also comes as the value of BNB increases from $600 on August 18 to $713 at the time of writing.

The weighted funding rate also has a positive reading to suggest that there is a bullish bias in the derivatives market. This positive funding suggests that long buyers are paying short sellers to keep their positions open.

The long/short reading on Binance and OKX also stands at 2.40 and 2.27, respectively, suggesting that there are more long accounts than short accounts opened on BNB on the two exchanges.

BNB Price Forecast as a Bull Pennant Emerges

The price of BNB has created a bull pennant on the one-day chart. This pennant encompasses a symmetrical triangle pattern, whose resistance at the upper trendline BNB was attempting to break at the time of writing.

If BNB closes above this upper trendline, the price will face the next resistance at the August 22 high of $726. A sustained uptrend above $726 will then push BNB to the 161.8% Fib of $803.

The RSI reading of 59 also supports a bullish long-term BNB price outlook. The RSI line that is creating higher highs also suggests that bulls are tightening their grip, and this could support more gains for Binance Coin.

The OBV line that is tipping north also suggests that there is more buying pressure than selling pressure, and if this trend holds, BNB price could reach the 161.8% Fib of $803 as the bull pennant suggests.

However, if the crypto market sentiment changes to bearish and crypto prices begin to retreat, BNB price could drop to the support at the 61.8% Fib of $678.