Key Highlights:
- BNB is experiencing short-term correction pressures but retains an overall positive outlook.
- The formation of a bull flag suggests BNB could reach prices exceeding $2,000.
- Recently, BNB has seen a 10% decrease within the last 24 hours, highlighting caution in the wider cryptocurrency arena.
BNB/USDT daily chart. Source: Cointelegraph / TradingView
With a 13% drop from its all-time high of $1,300 hit on Monday, the question arises whether the upward momentum for Binance-linked tokens has reached its peak.
BNB Faces Potential Overbought Risks
The BNB/USD pairing has recorded rising all-time highs since late July, which pushed the relative strength index (RSI) into overbought ranges, resulting in the likelihood of a brief downturn before stabilizing.
“This indicates potential for price correction, which could lead to a consolidation or a pullback.” - Saint
The RSI peaked at 81 last week before retracting to 71 at present, with similar past instances resulting in notable price declines (e.g., a 70% drop in 2021).
BNB/USD weekly chart. Source: Cointelegraph / TradingView
Price adjustments toward the critical threshold of $1,000 appear increasingly plausible in the upcoming days, given the recent overbought conditions.
- Potential declines may stretch to the $730-$860 bracket, where significant support seems established based on past performance.
Analyst Insights Despite immediate pullbacks, analysts maintain that BNB’s bullish characteristics remain intact due to its performance on higher timeframes. Observational data illustrates that the price stays optimistic in the monthly scope with continuous bull flags anticipated, projecting movements towards $2,100.
BNB/USD monthly chart. Source: Cointelegraph / TradingView
Conclusion: Analysts continue to speculate that BNB could achieve the $2,000 target in the near future.
