Will BNB Price Surge Above $700?
Inflation in January has decreased after a trend of higher rates in the past three months, the latest CPI data shows. However, BNB’s price (Binance Coin) is still rising, and it remains on the rise despite the increased bearish pressure. Additionally, it has recently changed Solana’s market value. With fixed coins improving chain indicators, their prices may rise sharply, possibly reaching $700.
BNB’s funding rate becomes negative
Even though other major cryptocurrencies, such as Bitcoin and Ether, have dropped by nearly 2%, BNB has managed to increase its value. In the broader cryptocurrency market, this tendency comes after a new CPI report, indicating that inflation has been rising for the fourth straight month.
The latest CPI data has attracted the attention of the entire market, indicating that U.S. consumer prices are up 3% from 3% in January last year and 2.9% from December. This is the biggest year-on-year growth since June, higher than economists have predicted. Monthly, prices rose 0.5%, marking the biggest growth in two years, up from 0.4% last month.
Despite the overall market economy decline and negative BNB financing rates, BNB grew more than 6.1% on the last day and grew about 17.7% over the past week. Data from Coinglass shows that the total liquidation volume of BNB in the past hour is about $436,000. Of the payment, approximately $435,000 came from the seller’s short position liquidation.
The chain chain metrics of BNB Smart Chain (BSC) are growing significantly. It is worth noting that BSC fees increased by 115% last week, while other blockchains such as Solana, Ethereum and Base also experienced declines. This surge in BSC activity may be partly due to the cessation of legal issues with the SEC in the last 60 days, which was announced two days ago.
What is the next step in BNB price?
Binance Coin (BNB) prices have been steadily rising, surpassing the key resistance level of $650. Despite strong opposition from sellers, the momentum of buying continues to grow, pushing prices to higher prices above $670 through various Fibonacci channels. Currently, BNB is trading at $669, up 5.9% from the past 24 hours.
The BNB/USDT pair is targeting $692, but it may face significant resistance that could lead to a $650 reserve. However, since the relative intensity index (RSI) of 75 is slightly above the threshold, the demand for BNB is still strong. If the price may exceed $692, it may increase by $745.
On the other hand, if the price fails to sell for $692, it may drop to $650.
As the current long/short ratio is 0.7203, there may be downward pressure. Currently, 58% of traders believe that the BNB price will fall, while 42% expect the price to rise.
