Key Insights

• BNB is experiencing short-term correction risks but maintains a solid bullish structure above its trendline.

• Breakout patterns and positive on-chain sentiment suggest possible price targets of $1,250 to $1,565 by year-end.

This weekend, BNB (BNB) surged more than 10%, distinguishing itself from a generally stagnant crypto market.

Momentum has dipped, and there’s some concern that Binance-related tokens could rise even higher.

Short-Term Risks for BNB

BNB’s recent rally has pushed the relative strength index (RSI) into overbought territory on the four-hour chart, raising the chances of short-term pullbacks. The token fell 2.89% from its earlier record high of $1,083.50.

A correction towards the 20-hour exponential moving average, which sits near $1,012, seems likely in the days ahead, especially given recent trends. This target aligns with the 0.236 Fibonacci retracement level.

If selling pressure intensifies next week, BNB could slide down to the 50-hour EMA, which is around $974—a level that has historically offered reliable support.

October Predictions for BNB

Analysts, including Frog Garrott, believe that BNB’s support level of over $970 indicates a healthy trend, aided by rising trading volumes in the derivatives market and long positions.

In a recent post, he noted:

“BNB has breached the $1,000 mark, touching a new high of $1,074 before finding support around $987-990. Trading volume surged to 3.28 billion, fueled by strong bullish momentum with a long ratio of 17.71.”

The $970 price level also supports BNB’s broader upward channel, as seen in the associated charts.

Since June, instances of retesting the lower trendline have typically led to rebounds of 20-35% toward the channel’s upper boundaries.

Repeating this pattern could push BNB past $1,150 in October, marking a 10% increase from its current level.

Year-End Targets for BNB

Looking further ahead, BNB is positioning itself for a potential strong finish this year, driven by a breakout from a long-term cup-and-handle formation.

The price needs to surpass the 1.618 Fibonacci extension level of approximately $1,037 to maintain upward momentum. The target here appears to be around $1,250, measured from the breakout, while the 2.618 Fibonacci line could extend to about $1,565 if the momentum holds.

This scenario reflects a significant potential for BNB based on previous patterns after the rising triangle breakout from 2020 through 2021.

Optimistic On-Chain Data for BNB

BNB’s Net Unrealized Profit/Loss (NUPL) metrics have returned to a level of optimism last seen right before a remarkable price jump from under $50 to over $600 during the 2020-2021 bull market.

The current sentiment indicates that holders are optimistic, which often suggests strength in the market cycles. Given the robust technical and fundamental outlook, BNB might be entering a particularly bullish phase, although some short-term adjustments could occur.

This article does not provide investment advice. All trading activities carry risks, and readers are encouraged to conduct their own research before making any decisions.