Why did the price of BNB increase today?
BNB (BNB) price action has been brutal lately, reaching another milestone on February 22. As of November 2022, the peak price has risen to $387.
Let's discuss the main reasons behind the BNB price rally.
Capital transfer from Bitcoin to BNB market
Over the past 24 hours, BNB's price increase has corresponded to a 2.5% decline in Bitcoin (BTC) against the US dollar.
This difference is particularly evident in the BNB/BTC trading pair, which has seen an increase of more than 11%, reflecting the changing market dynamics between these top-tier cryptocurrencies.
Simply put, traders are moving away from the Bitcoin market to seek safety in BNB. That is more visible in BNB's market dominance, which jumped from 2.74% to 2.99% in the last 24 hours.
Launching a portal on Binance Launchpool
The recent increase in BNB price coincides with the launch of PORTAL, a cross-chain gaming platform on Binance Launchpool, which highlights the demand for high-profile investors and increased capital inflows to BNB.
The portal launch is accompanied by a staking pool that allows users to load BNB and FDUSD into different pools to farm 50 million PORTAL tokens until February 29th. This indicates the potential for increased interest from investors and increased capital inflows to BNB.
Related: Aave Deploys DeFi Protocol on BNB Chain
Bull pennant breaking
BNB's rise to $387 appears to be part of a bullish breakout from the previous bull breakout range.
However, BNB's 4-hour relative strength index (RSI) rose above 70, an overbought area. In other words, the crypto-cryptocurrency price comparison process is at risk.
If BNB enters an overbought correction cycle, the main downside target is the 0.326 Fibonacci retracement line at $364 – a 4.5% drop from current price levels – at the end of February. Conversely, a critical break above the $387 resistance level could push BNB's price towards $400.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
