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Why is the BNB price up today?

CointelegraphCointelegraph2024/02/22 18:49
By:Yashu Gola

BNB ( BNB ) price momentum has been bullish recently, with Feb. 22 marking another milestone. The cryptocurrency soared to $387, its highest value since November 2022, showcasing a remarkable 9% increase in the last 24 hours.

BNB/USD daily price chart. Source: TradingView

Let's discuss the main reasons behind the BNB price rally.

Capital rotation from Bitcoin to BNB market

BNB's price rise in the last 24 hours coincides with Bitcoin's ( BTC ) 2.5% drop versus the U.S. dollar.

This divergence is particularly pronounced in the BNB/BTC trading pair, which has seen an increase of over 11%, highlighting a significant shift in market dynamics between these top-ranking cryptocurrencies.

BNB/BTC daily price chart. Source: TradingView

Simply put, traders are potentially rotating out of the Bitcoin market to seek safety in BNB. That is further visible in BNB’s market dominance, which has jumped from 2.74% to 2.99% in the last 24 hours.

BNB.D daily performance chart. Source: TradingView

Portal launch on Binance Launchpool 

The recent surge in BNB’s price aligns with the debut of Portal (PORTAL), a cross-chain gaming platform on the Binance Launchpool , highlighting a potential catalyst for increased investor interest and capital inflow toward BNB.

BNB/USD 4H price chart. Source: TradingView

The Portal launch accompanies a staking pool that enables users to stake their BNB and FDUSD into separate pools to farm 50 million PORTAL tokens until Feb. 29. That highlights a potential catalyst for increased investor interest and capital inflow toward BNB.

Related:  Aave deploys DeFi protocol on BNB Chain

Bull pennant breakout

BNB's rise toward $387 looks to be part of a bullish breakout emerging out of its previous bull pennant range. 

BNB/USD 4H price chart. Source: TradingView

Nonetheless, BNB’s 4-hour relative strength index (RSI) has risen above 70, an overbought area. In other words, the cryptocurrency risks undergoing a price retracement.

If BNB enters an overbought correction cycle, its primary downside target looks to be its 0.326 Fibonacci retracement line at $364 — down 4.5% from current price levels — by the end of February. Conversely, a decisive break above the $387 resistance level could push BNB’s price toward $400.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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