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    Why is the BNB price up today?

    2024.02.23 | exchangesranking | 81onlookers
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    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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