BNB News Today: BNB’s $1,100 Level Faces Test—Will It Spark a 30% Decline or a Strong Recovery?

Binance Coin (BNB) is facing downward pressure as chart analysts highlight the risk of a 30% pullback, citing a traditional "double top" pattern on its price chart. This formation, which often indicates a loss of upward momentum, appears as Binance's centralized exchange sees $21.75 billion in withdrawals and the platform faces increased attention following a recent margin system vulnerability.

The double top is characterized by two unsuccessful attempts to break above the $1,350–$1,375 resistance area, with crucial support at the neckline near $1,100. Should

fall below this threshold, it would confirm a bearish outlook, potentially sending prices down to $835—a 30% decrease from current values—by late October or early November. Technical signals such as the relative strength index (RSI) and moving average convergence divergence (MACD) have also shifted bearish, with the RSI dropping from overbought levels and the MACD indicating a negative crossover.

Recent developments have intensified worries. On October 10, a mispricing by Binance's internal oracle led to widespread margin calls, resulting in $20 billion in liquidations. Experts like Dr. Martin Hiesboeck from Uphold believe this may have been a deliberate attack on Binance's Unified Account system, possibly causing losses up to $1 billion. Binance has responded by allocating $283 million in compensation for affected users, but confidence in the market remains shaken.

Despite these challenges, BNB's value is still holding above important support levels, including the 20-day exponential moving average (EMA) at $1,155 and the 50-day EMA at $1,042. A bounce from these points could negate the double top pattern, giving buyers another chance to challenge the $1,350 resistance. However, the ongoing trend of withdrawals—Binance's seven-day net outflow stands at $3.69 billion—indicates persistent uncertainty.

Traders are also watching the "L1 wealth effect," where rising BNB prices have attracted more capital into the BNB Chain ecosystem, similar to Solana's rally in 2024. While this internal capital rotation has supported short-term growth, analysts warn that the cycle could reverse if stablecoin reserves fall or funds leave the network.

Technical metrics offer a mixed outlook. BNB's RSI is currently at 56.31, suggesting neutral to slightly positive momentum, while the MACD's small bullish crossover points to continued buying interest. Yet, negative funding rates in the derivatives market—now at -0.015%—reflect increasing bearish sentiment among traders.

BNB's future trajectory depends on its ability to stay above $1,100. Holding this level could revive bullish momentum, with $1,416 as the next significant resistance. On the other hand, a breakdown may prompt a move toward the 50-day EMA at $730–$750, and if that support fails, further declines to $1,050–$1,100 are possible.

[9] BNB technical analysis - Daily Updates｜Bitget (https://www.bitget.com/price/bnb/technical)