BNB News Today: BNB's $1,000 Support: A Lifeline or 30% Slide?

Binance Coin (BNB) is facing mounting pressure as recent market volatility and technical indicators signal a potential 25-30% correction in the coming weeks. The token, which hit a record high of $1,300 in early October, has since retreated to around $1,150, with analysts pointing to overbought conditions and weakening fundamentals as key risks. A double-top pattern on daily charts, combined with declining user activity on the BNB Chain, has raised alarms among traders, who now brace for a possible pullback to the $835–$900 range.

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The sell-off follows a $19 billion liquidation event at Binance, triggered by mispriced collateral assets like USDE and wBETH. Binance's subsequent pledge to compensate traders-expanded to $400 million-has done little to restore confidence. Critics argue the exchange's internal pricing mechanisms exacerbated the crisis, exposing systemic weaknesses in leveraged trading. Meanwhile, on-chain data reveals a 57% drop in new addresses on the BNB Chain since late September, signaling waning user demand despite the token's price surge.

Technical indicators further underscore the bearish sentiment. BNB's Relative Strength Index (RSI) has entered overbought territory, hitting 75.79, a level historically followed by steep corrections. A bearish divergence between rising prices and falling RSI readings suggests weakening momentum, while a double-top formation on four-hour charts projects a return to $1,000. Analysts like Saint on X note that "price corrections are likely if these patterns repeat," adding that key support levels at $730–$860 could determine the next phase of the market.

External macroeconomic factors compound the risks. Heightened trade tensions between the U.S. and China, including Trump's 100% tariff threat on Chinese imports, triggered a broader crypto crash, with BNB falling 10% in 24 hours. The October 10 flash crash erased $500 billion in market value, with altcoins like BNB suffering disproportionate declines. "Altcoins absorbed immense technical damage," noted Wiston Capital's Charlie Erith, as bitcoin's dominance rose amid the turmoil.

Long-term bulls, however, remain cautiously optimistic. BNB's bull flag pattern on monthly charts suggests potential for a rally to $2,100 if the $1,000 support holds. Projections from Crypto News and Binance Square estimate BNB could reach $1,226 by year-end 2025 and $2,410 by 2030, driven by Binance's ecosystem growth and deflationary tokenomics. Upcoming upgrades like the Maxwell protocol, which will reduce block times to 0.5 seconds, are also cited as catalysts for renewed adoption.

The immediate outlook hinges on critical support levels. A breakdown below $1,000 could accelerate the decline toward $835, validating the double-top pattern. Conversely, a rebound above $1,192-current strong resistance-might reignite the rally. Analysts stress the importance of Binance's post-liquidation stability and macroeconomic clarity, particularly ahead of the Fed's October rate decision.