BNB Price Forecast: Binance Token Faces 25% Drop Risk Amid Community Backlash

BNB (BNB) dropped over 15% this week, underperforming the broader crypto market as traders reacted to ongoing fallout from the exchange’s record $19 billion liquidation event.

Binance Faces Questions Over Relief Fund and System Design

BNB, which had recovered sharply after the Oct. 10 crypto market crash, slipped back below the $1,150 mark on renewed concerns about Binance’s compensation program and transparency.

Following the historic $19 billion liquidation, Binance pledged $283 million to compensate traders impacted by the collapse of synthetic collateral assets such as USDE, wBETH, and bnSOL.

These tokens, widely used as margin on Binance’s futures platform, abruptly depegged when market liquidity evaporated during the Oct. 10 crash.

Binance’s internal oracles relied on its own orderbook data instead of external feeds; the depeg spiraled faster, wiping out collateral values and triggering a cascade of forced liquidations.

Facing mounting user outrage, Binance expanded its compensation pool to $400 million through a mix of stablecoin vouchers and low-interest recovery loans.

Whatever went wrong at Binance it was big enough that they are willing to pay $400M to users and institutions.

They do this while not accepting any liability for the $100 billion crash. Who would pay $400M if nothing went wrong?

We need more transparency. Not just money. pic.twitter.com/V97MbBOy9U

— Duo Nine ⚡ YCC (@DU09BTC) October 14, 2025

Yet the move, while sizable, drew further scrutiny. Regulators and traders noted that the exchange explicitly avoided acknowledging liability, describing the payouts as “voluntary relief” rather than restitution.

Critics argue that this framing underscores deeper structural weaknesses within Binance’s margin system, namely, its dependence on internally priced assets, high leverage exposure, and thin liquidity during stress events.

The crypto market crash on October 11 is suspected to be a targeted attack that exploited a flaw in Binance’s Unified Account margin system.

The issue stemmed from using assets like USDE, wBETH, and BnSOL as collateral, whose liquidation prices were based on Binance’s own…

— Dr Martin Hiesboeck (@MHiesboeck) October 12, 2025

Some analysts even suggested that the crash may have been exacerbated or exploited by traders aware of these vulnerabilities.

In response, Binance has rolled out a series of reforms, including blended index pricing, redemption floors, and stricter risk controls aimed at preventing another depeg-driven meltdown.

Still, confidence remains fragile, further evidenced by the record withdrawals from Binance, aligning with BNB’s drop.

BNB Risks Deeper Correction as Double Top Forms

BNB’s daily chart shows a double top pattern, a bearish reversal setup forming near $1,300.

The structure, marked by two failed breakout attempts, identifies the neckline support around $1,100. A decisive breakdown below this level could confirm the pattern and target a downside objective near $835, implying another 25% potential decline.

Conversely, if BNB reclaims $1,150 support, aligning with the 50-day EMA (the green wave) with strong volume, it could invalidate the double top and aim for a retest of $1,300.

Until then, traders remain wary that Binance’s reputational drag may continue to cap BNB’s upside momentum.