Key Takeaways:

• BNB’s double top pattern signals a potential 30% decline to around $835 in October.
• Binance experienced significant outflows, the largest among centralized exchanges.

BNB (BNB) has struggled to maintain its recent surge, having faced rejection around the $1,350 mark twice this past week. This pattern indicates a potential pullback this October.

Double Top Trends Suggesting BNB Correction Risks

A chart analysis indicates a classic double top formation near the $1,350-$1,375 range, hinting at a possible trend exhaustion after a remarkable 95% recovery year-to-date.

The two peaks, labeled Top 1 and Top 2 as shown below, reflect failed breakout attempts, with significant support around $1,100. A confirmed drop below this level could solidify the double top setup.

BNB/USDT Daily Chart Source: TradingView

Should this scenario unfold, BNB is at risk of a 30% plunge, bringing it down to approximately $835 by late October or early November.

Binance’s Recent $21.75 Billion Withdrawals Heighten BNB Concerns

Over the last week, Binance has seen the largest user withdrawals of $21.75 billion, a record for centralized exchanges, which included $4.1 billion in just one day, per data from CoinGlass.

Source: X

This surge in outflow occurred following a liquidation crisis due to mispricing of key collateral assets, leading to widespread margin calls.

While outflow subsided somewhat by Wednesday, the seven-day net is still down by $3.69 billion.

Crypto Exchanges’ Net Reserves Source: CoinGlass

Some experts suspect the $20 billion liquidation crash was a targeted exploit into Binance’s margin operation system. Dr. Martin Hiesboeck, head of research at Uphold, indicated that attackers potentially took advantage of a flaw, leading to losses between $500 million to $1 billion, coining the incident “Luna 2.”

Source: X

The allegations surfaced amidst BNB’s struggles around the $1,350-$1,375 range on Monday, revealing diminished confidence despite Binance’s $400 million relief initiative announcement.

Potential for BNB to Stabilize

Despite the current landscape, BNB continues to operate above crucial exponential moving average (EMA) support levels, specifically the 20-day EMA around $1,155 and the 50-day EMA near $1,042.

BNB/USDT Daily Chart Source: TradingView

A rebound from these EMAs could invalidate the double top formation; thus, the price discovery potential still hovers just above the $1,350 resistance for this October.

This article does not serve as investment advice. Every decision regarding investments and trading carries risks, and it is advised to conduct personal research before proceeding.