After an extraordinary 129% year-to-date rally, Binance Coin (BNB) is showing signs of exhaustion. The token slid 7.5% in the past 24 hours, dropping to $1,193 with a market cap of $166 billion, according to CoinMarketCap.
The correction follows weeks of overextended momentum, as technical indicators and market positioning suggest a potential short-term top forming.
Overbought Signals Flash Red
BNB’s weekly Relative Strength Index (RSI) recently hit 81, its most overbought reading since July 2024, when a similar setup triggered a 44% correction. The current structure on the 4-hour chart reveals a clear double-top formation near $1,295, with a neckline around $1,100. A decisive daily close below that zone could open the door to a deeper decline toward $1,000, a critical psychological and technical level.
Market Rotation Hits Altcoins
Across the market, capital flow data suggests traders are shifting from altcoins back into Bitcoin. The Altcoin Season Index fell to 36, a 34% weekly drop, signaling that investors are trimming exposure to higher-beta assets. Over $673 million in long positions were liquidated across major exchanges in the last 24 hours, with BNB seeing some of the heaviest sell pressure.
Meanwhile, Bitcoin declined 3%, and Ethereum dropped 2.55%, underscoring the broader retracement. The Crypto Fear & Greed Index slipped to 42, reflecting growing caution ahead of Federal Reserve Chair Jerome Powell’s speech later this week. Investors are also watching renewed U.S.–China trade tensions, which have reignited volatility across risk markets.
Analysts Warn of “Cooling Phase” Ahead
Technical analysts note that BNB’s price behavior mirrors typical post-rally distribution patterns. Volume has thinned since early October, and derivatives data from Coinglass shows a sharp drop in open interest, suggesting leveraged traders are exiting. A short-term consolidation below $1,200 could stabilize the chart before the next directional move.
According to CryptoQuant, BNB’s funding rates have turned neutral after weeks of heavy bullish bias, indicating that speculative appetite is cooling. If the $1,100 support zone holds, the token could attempt a rebound toward $1,250, but a confirmed close beneath it would validate the double-top pattern.
Outlook: Correction or Opportunity?
Despite near-term headwinds, BNB remains one of the best-performing large-cap assets of 2025. Its ecosystem, from the BNB Chain’s $45 million “Reload Airdrop” announced this week to steady growth in DeFi TVL, continues to attract strong developer and retail participation. However, market timing remains crucial, as the token’s technicals signal an overheated phase that may need a reset before another leg higher.
For now, traders are eyeing the $1,100 level as the line between a healthy pullback and the start of a deeper correction.