Why is the BNB price up today?

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Why is the BNB price up today?
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BNB (BNB) price is up today, rising circa 5% to around $635. In doing so, the cryptocurrency has outperformed the crypto market, whose returns on April 12 were around 1.75%. 

BNB/USD daily price chart. Source: TradingView

Why is the BNB price up today?

Among the top catalysts driving the BNB’s price rally on April 12 include its rising crypto market dominance and the introduction of Omni Network (OMNI) and Saga on Binance Launchpool.

Binance Launchpool adds 

On April 12, Binance announced the inclusion of Omni Network on the Binance Launchpool, noting that users could stake their BNB and FDUSD into separate pools to farm OMNI tokens from April 13 until April 17. The exchange will also list OMNI tokens on April 17.

Last week, Binance Launchpool added Saga to its ecosystem, enabling users to stake their BNB and FDUSD to farm SAGA tokens beginning April 5 until April 9. Binance listed SAGA tokens for trading on its exchange on April 9. 

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In other words, the ability to farm OMNI and SAGA tokens by staking BNB increased speculative demand for the latter, leading to price gains.

BNB/USD daily price chart. Source: TradingView

This is similar to how BNB price rallied around the launch of the cross-chain gaming platform Portal (PORTAL) and synthetic dollar protocol Ethena (ENA) on the Binance Launchpool.

BNB/USD daily price chart. Source: TradingView

BNB’s crypto market dominance rebound

BNB’s price gains today further coincide with its rising crypto market dominance, indicating a growth in capital inflows to its market compared to its rivaling assets. As of April 12, the BNB Dominance Index (BNB.D) was 3.66%, the highest in three weeks.

BNB.D daily market cap. Source: TradingView

That particularly reflects BNB’s growing strength against Bitcoin (BTC). For instance, the BNB/BTC pair has rallied 9.5% since April 9 to reach 0.00888 BTC on April 12.

BNB/USD daily price chart. Source: TradingView

BNB price technical bounce

BNB’s gains today are part of what appears to be a breakout move originating from its prevailing bull pennant pattern, as shown below.

BNB/USD daily price chart. Source: TradingView

As a rule of technical analysis, a bull pennant breakout can result in the price rising by as much as the height of the previous uptrend. The BNB price could rise 57% toward $980 by June if the bull pennant breakout plays out as intended.

Related: BNB’s 12% weekly surge: peaking or just getting started?

On the other hand, the bull pennant breakout accompanies lower trading volumes, indicating indecisiveness among traders about BNB’s potential to continue rising. As a result, the BNB/USD pair may break below the pennant’s upper trendline, invalidating the bull setup altogether.

In this case, BNB’s price next downside target for the next few weeks will be around its 50-day exponential moving average (50-day EMA; the red wave) near $526, down 15.5% from current prices.

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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