After the latest CPI data revealed that inflation picked up in January, following a trend of higher rates over the past three months, the overall market mood has soured. However, the price of BNB (Binance coin) is still rising, maintaining its upward trend despite increasing bearish pressure. Additionally, it has recently flipped Solana’s market cap. With on-chain metrics for Binance coin improving, there could be a sharp increase in its price, potentially reaching $700.
BNB has managed to increase in value, even while other major cryptocurrencies like Bitcoin and Ether have fallen by nearly 2%. This dip in the broader crypto market follows a new CPI report indicating that inflation has been rising for the fourth straight month.
The latest CPI data has caused concern across the markets as it showed that U.S. consumer prices went up by 3% from last year in January, an increase from December’s 2.9%. This is the biggest year-over-year rise since June and was higher than what economists had predicted. On a monthly basis, prices went up by 0.5%, marking the biggest increase in two years, up from a 0.4% increase the previous month.
Despite the overall market downturn and negative BNB funding rate, BNB has increased by over 6.1% in the last day and has risen about 17.7% over the past week. Data from Coinglass indicates that BNB experienced a total liquidation of approximately $436,000 in positions over the last hour. Of this amount, around $435,000 came from the liquidation of short positions by sellers.
The BNB Smart Chain (BSC) is seeing significant growth in its on-chain metrics. Notably, BSC’s fees have jumped by 115% in the last week, while other blockchains like Solana, Ethereum, and Base have experienced declines. This surge in BSC’s activity could be partly due to the recent 60-day halt in Binance’s legal issues with the SEC, which was announced two days ago.
The price of Binance Coin (BNB) has been climbing steadily, surpassing the key resistance level at $650. Despite strong opposition from sellers, buying momentum continues to grow, pushing the price through various Fibonacci channels to reach a high above $670. Currently, BNB is trading at $669, marking a 5.9% increase over the last 24 hours.
The BNB/USDT trading pair is aiming for $692 but could face significant resistance, potentially leading to a fallback to $650. However, with the Relative Strength Index (RSI) at 75, which is just above the overbought threshold, there remains strong demand for BNB. If the price can break above $692, a surge to $745 could occur.
On the other hand, if the price fails to hold at $692, it could drop back down to $650.
With the long/short ratio currently at 0.7203, there might be a downward pressure ahead. At present, 58% of traders believe the BNB price will drop, while 42% anticipate a price increase.
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