BNB Price Prediction: BNB Pulls Back 26% from ATHs – How Low Can It Go?

Binance Coin (BNB) has dropped by nearly 6% in the past 24 hours, and it is currently the worst-performing asset in the top 5, as the week started with a strong selling spree.

The weekend was relatively calm, following the Federal Reserve’s decision to cut rates and Powell’s unexpected comments regarding the central bank’s stance on a potential December cut.

The head of the institution said that it was uncertain if it would lower rates for a third time this year, possibly amid the latest decisions made by President Donald Trump to raise tariffs by 100% on Chinese goods.

If inflation increased in October, it is highly likely that the Fed will scrap that rate cut for good. This will mean big change of plans for analysts, as data from FedWatch shows that nearly 91% of economists surveyed considered a third 25bps cut a ‘done deal.’

BNB Books Second Highest Single-Day Liquidations of 2025

Long liquidations in the past 24 hours have already surpassed the $1 billion mark. Apart from the October 10 peak, yesterday was the second worst day for BNB bulls in the past 6 months as $18 million worth of long positions in the token were wiped out.

Market sentiment has soured as a result of these events. The Fear and Greed Index has plummeted from a 30-day high of 62 to 36 at the time of writing, emphasizing that fear is dominating investors’ minds.

Daily Transaction Volumes BNB Chain – Source: BSC Scan

Meanwhile, the spike that BNB’s daily transaction volumes experienced in October has almost fully faded. This emphasizes that interest in the network’s ecosystem may have waned as market sentiment fell off a cliff.

Market conditions were favorable two weeks ago, but the combination of Trump’s hostilities with China and Powell’s gloomy comments may have fully derailed altcoin season and could have set tokens like BNB on course for a strong correction.

Risk-Reward Analysis Favors a Long Position at This Price

The daily chart shows that BNB dropped below a key support area at $1,060, from which it had bounced strongly multiple times.

This bearish breakout could have marked the beginning of a deep correction, with a first target set $950. This could be an interesting price to scoop up BNB tokens if you still have a positive long-term outlook.

BNB/USD 4H Chart (Binance) – Source: TradingView

At that price, you could cash out a 43% if BNB climbs back to its all-time high shortly. Nonetheless, this is not a given, and it is still too early to tell if this could be a normal correction or the beginning of a bear market.

We already had a bear market and a bull market this year, so who knows if we’ll get three cycles in just 12 months.

Breaking below $950 would confirm that this latest rally has lost steam and that bulls have capitulated. In that case, we may see BNB dropping to $840 by year’s end, meaning a 16% downside risk.

Since the upside potential is much higher than this expected drawdown, the risk-reward ratio for a long position is good enough. Market conditions have deteriorated a bit, but not to the extent of justifying the start of a bear market – at least in my view.