Sharp Decline Tests Key Support Levels as Traders React to Sudden Volatility
Binance Coin (BNB) has come under heavy selling pressure following a steep market correction that rattled traders this week. After climbing past $1,300 earlier in October, the token faced a swift reversal, plunging toward the $1,120 zone, as seen on the latest 4-hour chart. The move has left investors questioning whether BNB’s recent rally was sustainable or merely a speculative overshoot.
The chart data shows a clear breakdown from the upper resistance range between $1,240 and $1,260, triggering a wave of liquidations and short-term panic. The price now hovers near $1,127, a level that coincides with a crucial short-term demand zone marked between $1,080 and $1,140.
“The correction was overdue,” said one BITX market analyst. “BNB had rallied nearly 45% in less than two weeks, and the momentum indicators were flashing overbought signals long before the pullback.”
Below the current range, a secondary support area emerges between $900 and $950, aligning with previous consolidation seen in September. Many traders believe this could act as a strong rebound base if the selloff continues. Meanwhile, volume data reveals heightened activity during the crash, suggesting institutional repositioning rather than retail panic alone.
The upper resistance band near $1,250 remains the immediate barrier for recovery. A confirmed breakout above this range could restore bullish sentiment, but a daily close below $1,100 might signal a deeper retracement toward the $900 support zone.
“BNB is currently in a retest phase,” According to BITX experts. “If buyers defend the $1,100 region successfully, the market could regain strength heading into late October.”
For now, sentiment remains mixed as BNB attempts to stabilize within its mid-range channel. Traders are advised to watch for volume confirmation and candle closes before anticipating another upward leg.
The coming sessions will be critical in determining whether this correction marks a healthy reset — or the start of a broader trend reversal.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.