BNB Price News: BNB to $900? Downtrend Persists Despite Giveaways

BNB Coin (BNB) has not been spared from the latest wave of negative momentum that the crypto market is experiencing and has already moved below the $1,100 area today.

In the past 7 days, BNB has shed 12.4% of its value, underperforming both Bitcoin (BTC) and Ethereum (ETH), although it remains the top gainer within the top 5 cryptos with a 54% year-to-date jump.

Nonetheless, trading volumes have increased by 25% in the past 24 hours, moving to $7 billion, and currently accounting for nearly 5% of the token’s market cap.

Binance has been giving away money throughout the week to compensate traders who suffered heavy losses as a result of last Friday’s flash crash.

Just two days ago, the world’s largest crypto exchange announced the launch of a $400 million compensation fund that will make up a portion of the losses that traders who were liquidated last week experienced.

CZ Official X Account – Source: X.com

During a brief period, Binance’s platform collapsed, and users were unable to buy or sell tokens. I can attest to that as I was on the buying side of the crash, but received several messages that the platform was too congested due to excess orders and heightened activity.

Hundreds of Thousands Were Affected by Last Week’s Crash

Over 1.6 million traders were hit by massive liquidations exceeding $19 billion, according to data from CoinGlass. This showcases how centralized platforms can still experience dramatic operational issues that could result in big losses for users, no matter how big they are.

However, Binance is not aiming at making users whole for their losses. Instead, they are only addressing the consequences of the depegging event that specific assets, including USDe, BNSOL, and WBETH experienced as a result of the crash.

Moreover, the exchange also announced an airdrop of BNB tokens to users who traded meme coins within the BNB ecosystem, also as part of an effort to compensate them for the losses they incurred on October 10.

Although it is still too early to tell, the magnitude of the liquidations the market saw back then could result in legal troubles for Binance down the road, as a decent number of deep-pocketed investors were likely impacted by what happened.

These are well-resourced individuals who can take on the legal fight and could be inclined to do so if they feel it is worth it, financially speaking.

BNB Seems Poised to Hit $900 If Downtrend Persists

Looking at the hourly chart, BNB is on a clear downtrend, and it is currently heading toward the $950 level if it fails to recapture the lost support area shown in the chart.

BNB/USD Hourly Chart (Binance) – Source: TradingView

The token bounced off $1,030 temporarily during today’s session and is now retesting the $1,090 threshold from below.

In this lower time frame, BNB is already trading below its 200-period exponential moving average (EMA), meaning that bears are in control of the price action.

The Relative Strength Index (RSI) is stepping off oversold levels and has already crossed above the 14-day moving average. Although this is a positive indication, it is less reliable compared to the same signal in the daily chart.

However, if the token rises above $1,100, this bullish breakout, paired with a buy signal in the RSI, could anticipate an upcoming recovery in the price of BNB.

Binance may continue to give out money, but that does not guarantee that traders will jump back into the market just yet. Macroeconomic conditions have deteriorated as a result of Trump’s hostile rhetoric against China.

If the Federal Reserve postpones its planned rate cut this month, that would throw out of the window the market’s baseline scenario and could result in a much deeper correction that will likely push BNB to $900 or lower.