Key Points:
BNB may experience a short-term pullback, but the overall structure remains bullish.
The bull flag technical pattern is still in play, with price targets pointing to over $2,000.
BNB (BNB) has dropped 10% in the past 24 hours, reflecting a general risk-off trend in the cryptocurrency market.
Since hitting an all-time high of $1,300 on Monday, BNB has fallen 13%. The market is watching whether the rally of this Binance ecosystem token has come to an end.
Since the end of July, BNB/USD has repeatedly set new all-time highs, pushing the relative strength index (RSI) on the weekly chart into overbought territory, increasing the risk of a short-term pullback.
Last week, the RSI reached 81 and has now retreated to 71. Historical data shows that high RSI levels are often accompanied by significant pullbacks, such as in 2021 (a 70% drop) and July 2024 (a 44% retracement).
If the recent overbought pullback trend continues, the likelihood of BNB adjusting towards the psychological level of $1,000 in the coming days is increasing.
The downtrend for BNB may extend to the range of $730 to $860. Currently, both the 20-week simple moving average (SMA) and the 50-week SMA are located within this range, providing key support during the recent pullback.
Analyst Saint stated on the X platform: "BNB's RSI is currently in the overbought range across multiple timeframes, indicating that the price may correct, or there may be consolidation or a pullback."
The double top pattern on BNB's four-hour chart shows a return to the $1,000 neckline, as illustrated below. Such a move would result in a total loss of 17% from the current level.
The potential for a short-term pullback in BNB's price is amplified by the growing bearish divergence between its price and RSI.
The above chart shows that although BNB/USD formed higher highs between October 7 and October 13, the RSI printed lower highs.
The divergence between rising prices and falling RSI typically indicates weakness in the current uptrend, prompting traders to sell more at local highs as profit-taking intensifies and buyers become exhausted.
Despite today's pullback, analysts believe that BNB bulls still dominate the market based on high timeframe price trends.
Data from Cointelegraph Markets Pro and TradingView shows that BNB remains bullish on the monthly timeframe, with the bull flag technical pattern remaining valid since October 2023, indicating that BNB is expected to rise to $2,100.
This suggests a potential increase of 73% from the current price.
Several analysts still believe that BNB has room to rise, and the $2,000 target is not "far off."
Analyst Henry stated on the X platform: "BNB remains strong after the drop. If it continues to maintain the current upward momentum, BNB is likely to surpass Ethereum soon. The next target is $2,000, which is not far away, and a new all-time high is imminent."
Analyst CoinCentral noted that Binance's payment of $283 million to affected users, along with high network activity, may help BNB maintain its bullish trend.
Analysts are generally focused on BNB's next $2,000 target.
According to Cointelegraph, if the daily closing price breaks above $1,350, it will indicate that bulls still control the market, and BNB/USDT is expected to rise further to $1,600 and above.
Related: Analysts say: The $19 billion cryptocurrency market crash is "controlled deleveraging," not a chain collapse.
Original article: “BNB Price Drops 12% from All-Time Highs: Is the Bull Run Over?”
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