- BNB fell 10% as overbought signals point to a short-term pullback toward the $1,000 level.
- Technical charts show bearish divergence, suggesting profit-taking and near-term weakness.
- Analysts remain bullish on the longer term, with price targets as high as $2,100 if bullish momentum resumes.
BNB (BNBUSD) dropped 10% in the last 24 hours amid a broader shift toward lower risk sentiment across cryptocurrency markets.
The Binance-linked token, which reached an all-time high near $1,300 on Monday, has since retreated about 13%, prompting debate over whether its recent rally has run its course.
BNB moves into overbought territory
BNB’s recent price surge pushed several technical indicators into overbought zones, increasing the likelihood of a short-term correction.
Since late July the token recorded a string of fresh highs, driving its weekly Relative Strength Index (RSI) up to 81 last week before easing to 71 — still above the overbought threshold of 70.
Historically, similar elevated RSI readings have preceded sharp pullbacks.
In 2021 a comparable pattern preceded a roughly 70% decline, and an overbought signal in July 2024 was followed by a 44% retracement.
Analysts now say a retreat to the psychological $1,000 level is becoming increasingly likely if those patterns repeat.
The 20-week and 50-week simple moving averages (SMAs), currently sitting roughly between $730 and $860, could act as key support zones in the event of a deeper slump.
These moving averages have historically helped cushion BNB’s price during past market corrections.
Analyst Saint wrote on X that BNB’s RSI is “currently in overbought territory across multiple periods,” implying “the potential for a price correction that could lead to consolidation or a pullback.”
Technical signals point to a $1,000 target
Short-term charts also suggest downside risk.
A double-top pattern visible on BNB’s 4-hour chart projects a return to the pattern’s neckline near $1,000, implying an approximate 17% decline from current levels.
In addition to that bearish formation, traders are noting rising divergence between BNB’s higher price highs and declining RSI readings.
From October 7 through Monday, BNBUSD made higher highs while the RSI printed lower highs — a classic bearish divergence.
Such divergences frequently signal waning bullish momentum and increased selling pressure as traders lock in gains.
If this trend continues, the $1,000 area could serve as an important test of buyers’ resolve in the coming days.
Long-term outlook remains bullish
Despite the recent setback, many analysts retain a constructive view on BNB’s long-term prospects.
Data from market services show the token still maintains a bullish structure on higher timeframes.
The monthly chart continues to display a bullish flag pattern that has been developing since October 2023, signaling the potential for a sustained rally toward $2,100 — roughly 73% above current prices.
Several market watchers, including analysts Henry and CoinCentral, have reaffirmed bullish forecasts.
Henry noted that “BNB still looks strong after the pullback,” adding that the token could “potentially overtake ETH if momentum continues at the same pace.”
CoinCentral pointed to Binance’s recent $283 million payout to affected users and robust on-chain activity as supportive factors that could sustain upward momentum.
For now, traders are focused on whether the $1,000 support level will hold — a key test that may determine whether the correction deepens or the next upward leg begins.