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The recent surge in selling pressure within the cryptocurrency market has significantly affected Binance‘s native token, BNB, causing it to drop by 10% over the last 24 hours. On Monday, BNB reached an all-time high of $1,300, but since then, it has lost 13% of its value, raising questions about whether the rally has come to an end.
RSI in Overbought Territory: Is a Technical Correction Inevitable?
Since the end of July, the BNB/USD pair has consistently set new records. The weekly chart reveals that the Relative Strength Index (RSI) has entered the overbought range, drawing attention. Last week, the RSI peaked at 81, but it has since settled at 71. Historical parallels are drawn to previous sharp corrections, 70% in 2021 and 44% in July 2024, which suggest an increased likelihood of a pullback toward the psychological support level of $1,000.
Analyst Saint notes on social media that BNB’s RSI values are in the overbought zone across multiple timeframes, indicating a potential short-term correction or consolidation. Technically, the price may find strong support in the $730–860 range, coinciding with the 20 and 50-week moving averages.
$1,000 Level Critical: Bulls Yet to Give Up
BNB’s four-hour chart shows a double top pattern, which strengthens the probability of price retreating to the neckline at $1,000. If this scenario unfolds, the total loss from current levels could reach 17%. Moreover, the negative divergence between RSI and price suggests weakening momentum, possibly leading to intensified profit-taking.
Meanwhile, TradingView data indicates that the bullish flag in the monthly chart remains valid. This formation suggests that prices could rise as high as $2,100. Analyst Henry asserts, “BNB remains strong even after the plunge. If it continues at this pace, it could surpass ETH. The target is $2,000, aiming for a new peak.” Binance’s recent $283 million compensation to users and high transaction volumes also support the bullish scenario.
A similar pattern was observed with Ethereum 
$3,093 in recent weeks, where ETH’s price fell from $4,700 to $4,200 following RSI’s overbought signals, indicating a market-wide correction phase.
In conclusion, while BNB’s short-term technical indicators suggest a possible correction, the long-term trend remains upward. The scale of Binance’s ecosystem, lively transaction volume, and investor confidence could set the stage for the price to regain strength. However, the $1,000 level will be crucial both technically and psychologically.
