BNB Faces Risk of 30% Drop as Double Top Pattern Emerges

• BNB’s double top pattern suggests a 30% correction towards $835 by November.
• Binance experienced $21.75B in outflows after a margin system crisis.
• Momentum indicators show weakening buying strength for BNB, signaling potential decline.

BNB’s price momentum has been cooling off recently, signaling potential challenges ahead. The cryptocurrency has been struggling to extend its record-breaking rally and has encountered rejection near the $1,350 level twice. 

This pattern raises concerns over a possible pullback as BNB faces a classic double top formation. The chart reveals two failed breakout attempts near the $1,350-$1,375 area, which signals trend exhaustion. 

A decisive close below the $1,100 neckline could confirm the bearish pattern, potentially leading to a correction of up to 30%, pushing BNB to as low as $835 by late October or early November.

Binance Outflows Complicate BNB’s Recovery

Further complicating BNB’s outlook, Binance recently saw an unprecedented $21.75 billion in withdrawals. The surge in outflows, including a $4.1 billion spike in a single day, has shaken investor confidence. 

This follows a liquidation crisis triggered by the mispricing of collateral assets within Binance’s internal margin system, resulting in a cascade of margin calls. Analysts suggest the liquidity crunch was exacerbated by a potential exploit of Binance’s Unified Account margin system, with some estimating losses as high as $1 billion. 

Despite Binance’s efforts to reassure investors with a $400 million relief fund, the impact on BNB’s price could still be significant if these issues persist.

BNB’s Outlook Remains Uncertain, Support Levels Under Scrutiny

Although BNB faces significant risks, the cryptocurrency continues to trade above key support levels, particularly the 20-day and 50-day exponential moving averages (EMA). The 20-day EMA stands near $1,155, while the 50-day EMA is around $1,042. 

A rebound from these support zones could mitigate the risk of a double top pattern and offer hope for a price recovery. However, if BNB fails to hold above these levels, the risk of further downside remains. 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.