- BNB falls 10% as overbought signals suggest a short-term pullback toward the $1,000 level.
- Technical charts show a bearish divergence, hinting at profit-taking and near-term weakness.
- Analysts still see upside, with long-term targets up to $2,100 if bullish momentum resumes.
BNB (BNBUSD) has fallen 10% over the last 24 hours, reflecting a broader risk-off sentiment in the cryptocurrency market.
The Binance-linked token, which recently hit a record high of $1,300 on Monday, has since seen a 13% drawdown, prompting speculation about whether its latest rally has run out of steam.
BNB enters overbought territory
The recent surge in BNB’s price has pushed technical indicators into overbought zones, suggesting potential for a short-term correction.
The token has recorded multiple all-time highs since late July, driving its weekly relative strength index (RSI) to 81 last week before easing to 71 — still above the overbought threshold of 70.
Historically, such elevated RSI readings have preceded steep corrections.
In 2021, a similar pattern led to a 70% drop, while another overbought signal in July 2024 resulted in a 44% pullback.
Analysts now believe a retreat toward the psychological $1,000 level is increasingly likely if these patterns repeat.
The 20-week and 50-week simple moving averages (SMA), currently positioned between $730 and $860, could serve as key support zones in the event of a deeper decline.
These levels have previously helped cushion BNB’s price during market corrections.
Analyst Saint, in an X post, noted that BNB’s RSI “is currently in the overbought range across multiple periods,” suggesting “potential for price correction, which could lead to a consolidation or a pullback.”
Technical signals point to $1,000 target
Short-term charts further indicate potential downside.
A double-top formation visible on BNB’s four-hour chart projects a return to the pattern’s neckline at $1,000, implying a total decline of about 17% from current levels.
Adding to this bearish outlook, analysts have observed a growing divergence between BNB’s rising price and its falling RSI readings.
Between October 7 and Monday, the BNBUSD pair formed higher highs while the RSI posted lower highs — a classic bearish divergence.
Such divergences often hint at weakening bullish momentum and increased selling pressure as traders lock in profits.
If this trend persists, the $1,000 mark could become an important test of buyer strength in the coming days.
Long-term outlook remains bullish
Despite the latest setback, analysts remain broadly optimistic about BNB’s long-term prospects.
Data from Cointelegraph Markets Pro and TradingView show that the token maintains a bullish structure on higher time frames.
The monthly chart continues to display a bull flag formation that has been in place since October 2023, signaling potential for an extended rally toward $2,100 — representing a 73% upside from current prices.
Several market watchers, including analysts Henry and CoinCentral, have reiterated their bullish outlooks.
Henry wrote that “BNB is still looking strong after the crash,” adding that the token could “flip ETH soon if it goes at the same speed.”
CoinCentral pointed to Binance’s recent $283 million payout to affected users and strong network activity as supportive factors that could sustain the uptrend.
For now, traders are watching whether the $1,000 support level holds — a key test that may determine whether BNB’s correction deepens or the next leg higher begins.
