- BNB drops 10% as overbought signals point to a short-term pullback toward the $1,000 level.
- Technical charts show bearish divergence, suggesting profit-taking and short-term weakening.
- Analysts remain bullish over the long term, with targets up to $2,100 if bullish momentum returns.
BNB (BNBUSD) fell about 10% over the past 24 hours, reflecting broader risk-off sentiment across crypto markets.
The Binance-linked token, which reached a record high near $1,300 on Monday, has since retraced roughly 13%, prompting speculation that its recent rally may be losing steam.
BNB moves into overbought territory
BNB’s recent price surge pushed technical indicators into overbought zones, increasing the probability of a short-term correction.
Since late July the token set multiple record highs, driving its weekly Relative Strength Index (RSI) up to 81 before easing to 71 — still above the overbought threshold of 70.
Historically, such elevated RSI readings have preceded sharp pullbacks.
In 2021 a similar pattern preceded a roughly 70% decline, while another overbought reading in July 2024 led to a 44% drop.
Analysts now believe a retreat toward the psychological $1,000 level is increasingly likely if those patterns repeat.
The 20-week and 50-week simple moving averages (SMAs), currently located between $730 and $860, could provide important support zones in the event of a deeper sell-off.
Those levels have previously helped cushion BNB’s price during market corrections.
Analyst Saint wrote on X that BNB’s RSI “is currently in an overbought range across multiple periods,” indicating “potential for a price correction that could lead to consolidation or pullback.”
Technical signals point to a $1,000 target
Shorter-term charts also suggest downside risk.
A double-top formation visible on BNB’s four-hour chart implies a return to the pattern’s neckline near $1,000, which would represent roughly a 17% decline from current levels.
Beyond this bearish scenario, analysts have noted rising divergence between BNB’s higher price highs and its falling RSI readings.
Between October 7 and Monday the pair posted higher price peaks while the RSI printed lower highs — a classic bearish divergence.
Such divergences often signal weakening bullish momentum and increased selling pressure as traders lock in profits.
If this dynamic persists, the $1,000 mark could become a key test of buyer strength in the coming days.
Long-term outlook remains bullish
Despite the latest setback, analysts generally remain optimistic about BNB’s long-term prospects.
Data from Cointelegraph Markets Pro and TradingView show the token maintaining a bullish structure on higher timeframes.
The monthly chart continues to display a bull-flag formation in place since October 2023, suggesting potential for an extended rally toward $2,100 — roughly a 73% increase from current prices.
Several market observers, including analysts Henry and CoinCentral, reiterated bullish views.
Henry wrote that “BNB still looks strong after the pullback,” adding that the token could “soon overtake ETH if it continues at the same pace.”
CoinCentral pointed to a recent $283 million payout by Binance to affected users and strong on-chain activity as supportive factors that could sustain the uptrend.
Traders are watching whether the $1,000 support level holds — a crucial test that may determine whether BNB’s correction deepens or if a new leg higher begins.