BNB Surges 5%, Outperforms Market due to Rising Dominance and New Launchpool Inclusions
Summary:
BNB (BNB) price surged by approximately 5%, reaching nearly $635, outperforming the broader cryptocurrency market. The rise is primarily driven by its increasing market dominance and the introduction of Omni Network (OMNI) and Saga on Binance Launchpool. Lower trading volumes during the breakout suggest traders' uncertainty about BNB's future increases. If the bullish setup invalidates, BNB's downside target could be around its 50-day exponential moving average near $526. All trade and investment carry inherent risks and individuals should do their own research before decision-making.
The value of BNB (BNB) experienced an approximate surge of 5% today, reaching nearly $635. This surge has placed it ahead of the broader cryptocurrency market, which on April 12 only marked a return of about 1.75%. The uptick in BNB's price is due to various contributing factors.
The primary catalysts that propelled the surge in BNB's price on April 12 include the growing dominance of BNB in the crypto market and the recent addition of Omni Network (OMNI) and Saga on Binance Launchpool.
On the same date, Binance publicized the introduction of Omni Network to its Launchpool, highlighting that users can opt to farm OMNI tokens by staking their BNB and FDUSD into different pools, starting from April 13 until April 17. Binance will also proceed to list OMNI tokens on April 17.
Previously, Binance Launchpool had admitted Saga into its system, allowing users to farm SAGA tokens by staking their BNB and FDUSD from April 5 to April 9. Following this, Binance listed SAGA tokens for trading on April 9. In essence, the opportunity offered to farm OMNI and SAGA tokens by staking BNB has created speculative demand for the latter, hence lifting its price.
This circumstance is similar to the surge of BNB's price during the launch of the cross-chain gaming platform Portal (PORTAL) and synthetic dollar protocol Ethena (ENA) on Binance Launchpool.
Concurrently, BNB's price surge coincides with its increased dominance in the crypto market, signifying a surge in capital inflows into its market as opposed to other competing assets. As of April 12, BNB's market dominance was at 3.66%, marking its highest level in three weeks.
This indicates that BNB is steadily gaining strength against Bitcoin (BTC), with the BNB/BTC pair posting a gain of 9.5% from April 9 to April 12, settling at 0.00888 BTC.
From a technical perspective, the recent gains BNB has made appear to be part of a breakout from its existent bull pennant trend. Historically, a breakout from a bull pennant can result in the price increasing by an amount equal to the preceding uptrend, foreseeing a 57% gain in BNB's price, potentially reaching $980 by June.
Conversely, lower trading volumes accompany the breakout, signaling uncertainty among traders about BNB's future trajectory. Consequently, the BNB/USD pair might breach below the pennant's upper trendline, thereby nullifying the bullish setup. In such a scenario, the subsequent downside target for the BNB's price over the subsequent few weeks could be around its 50-day exponential moving average (50-day EMA; the red wave) near $526, representing a 15.5% drop in the current prices.
Readers should note that this shouldn’t be taken as investment advice or recommendations, and trading and investing always carry inherent risk. Readers are encouraged to perform their own research before making any decision.
Published At
4/12/2024 3:08:36 PM
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