BNB Peaks at $387 Amid Capital Rotation from Bitcoin and Binance Launchpool's Portal Debut
Summary:
BNB cryptocurrency displayed significant growth, reaching $387, a peak not seen since November 2022, marking a 9% rise within 24 hours. This surge coincided with Bitcoin’s 2.5% dip, indicating a capital rotation from Bitcoin to BNB. The debut of Portal, a cross-chain gaming platform on Binance Launchpool, and a bull pennant breakout further stimulated BNB's rise. However, the Relative Strength Index (RSI) suggests a potential overbought correction, posing risks of price retracement.
The BNB (BNB) cryptocurrency has shown a decidedly positive momentum of late, with the noteworthy date of February 22 marking a peak in its value. The digital coin rose to a staggering $387, a height not seen since November of 2022, showcasing a commendable uptick of 9% within a span of 24 hours.
BNB/USD daily price chart. Source: TradingView
We now pivot to the primary causes that have led to the rally in BNB's pricing.
A significant allocation of funds from Bitcoin towards the BNB market
The last 24 hours have witnessed a surge in the value of BNB that coincides with a 2.5% dip in Bitcoin's (BTC) worth against the U.S. dollar. The difference is especially stark concerning the BNB/BTC trading pair, with an over 11% rise, indicative of a major shift in market trends between these leading cryptocurrencies.
BNB/BTC daily price chart. Source: TradingView
In essence, it is reflective of traders potentially shifting their focus from the Bitcoin market and seeing BNB as a safer bet. This is further emphasized in the rise of BNB’s market dominance, which has shot up from 2.74% to 2.99% within the last 24 hours.
BNB.D daily performance chart. Source: TradingView
Introduction of Portal on Binance Launchpool
A potential catalyst that could be fueling increased interest and capital influx towards BNB is the recent integration of Portal (PORTAL), a cross-chain gaming platform, on the Binance Launchpool.
BNB/USD 4H price chart. Source: TradingView
The Portal launch is paired with a staking pool that permits users to stake their BNB and FDUSD into separate pools to farm 50 million PORTAL tokens until February 29.
Related: Aave introduces DeFi protocol on BNB Chain
Bull pennant Breakout
BNB's upward trajectory towards $387 seems to be a consequence of an auspicious breakout from its earlier bull pennant range.
BNB/USD 4H price chart. Source: TradingView
However, it's noteworthy that BNB's 4-hour relative strength index (RSI) now hovers above 70, indicating an overbought zone. This insinuates that the digital currency could face a price depreciation.
If BNB enters a phase of overbought correction, its main target would be its 0.326 Fibonacci retracement line at $364 - a 4.5% dip from the current price points - by the end of February. Meanwhile, a confident break above the resistance level of $387 could catapult BNB’s value close to $400.
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Published At
2/22/2024 8:17:44 PM
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