What is the reason behind the surge in BNB price today?

**BNB Price Bounces After Being “Oversold”**

The price of BNB experienced an increase of over 3% on June 14th. This rise was attributed to bearish traders opening more BNB-tied contracts, despite experiencing losses through liquidations in the previous 24 hours. Another factor that contributed to this increase was the fact that BNB was considered “oversold,” prompting traders to buy the dip.

**Recovery From “Oversold” Status**

On June 14th, the BNB price climbed nearly 4% and reached $253. This gain was part of a recovery trend that saw the price rebounding by 12% just two days after reaching a six-month low of $220. From a technical perspective, this rise occurred after BNB became “oversold.” The daily relative strength index (RSI) dropped to around 16.6 two days prior, marking its lowest reading since March 2020.

**BNB Funding Rate Flips Negative**

The funding rate of BNB dipped below zero on June 10th and has remained negative ever since. Essentially, bearish traders are willing to pay bullish traders to keep their short bets open. Amidst an overall downtrend, BNB open interest has reached a one-month high of approximately $377 million. These metrics suggest that most traders are betting on further price declines, which often leads to price rebounds when short positions get liquidated.

**Key BNB Price Level to Monitor**

The recent 25% decline in BNB’s price, prompted by the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Binance, naming BNB as an “unregistered security,” has sparked concerns. Nonetheless, BNB has consistently found strong support near $220 during market declines. This suggests that this level could serve as an ideal buy zone following the price drop caused by the SEC lawsuit.

Currently, BNB/USD trades within the $240 to $250 range, which has been a consolidation area from December 2022 to January 2023. If the price successfully closes above the $250 resistance, the primary upside target would be the 50-day exponential moving average (the red wave) nearing $300 in the third quarter. This represents an increase of around 20% from the current prices.

Alternatively, if the price closes below $240, there is a risk of a significant drop towards $220. In the event of further sell-offs, the next downside target to monitor is likely to be in the $180 to $205 range.

**Disclaimer**

It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.