Binance Coin (BNB) has achieved an impressive milestone. The asset broke the $1,000 psychological barrier. It set a new all-time high (ATH) of $1,108.17. However, this rally exposes holders to risks. Nic Puckrin, CEO of Coin Bureau, warned that “vague guidance can trigger a reversal.” The euphoria of BNB breaks $1,000 now faces bearish technical signals.
The bullish momentum is supported by solid data. The total value locked (TVL) on the Binance Smart Chain (BSC) stands at $7.93 billion. This shows strong ecosystem activity. Furthermore, institutional demand is growing. B Strategy, a Nasdaq-listed fund, announced plans to raise $1,000 million. These funds will be specifically allocated to accumulating BNB.
This rally is not happening in isolation. It combines several catalytic factors. On one hand, expectations of interest rate cuts by the Fed have improved macro sentiment. On the other hand, rumors of easing supervision by the U.S. Department of Justice (DOJ) have acted as a tailwind. The fact that BNB breaks $1,000 represents a psychological milestone. It solidifies the asset amid renewed dynamism in the DeFi sector.
Can the $1,100 support level halt the looming technical correction?
Despite the optimism, technical charts show vulnerability. The Relative Strength Index (RSI) exceeds the 77 level, indicating extreme overbought conditions. More concerning is the formation of a “double top” pattern near $1,300. Its support neckline is located around $1,100. A double top often precedes a correction. Timothy Misir of BRN warned that “underlying distribution can occur even in rallies.”
The market now faces mixed readings. On-chain data, like the NVT signal, shows relative undervaluation compared to network activity. Nonetheless, the risk of profit-taking is high. If the price confirms a sustained close below the key $1,100 support, the correction could be significant. Analysts cite technical targets at $1,000, $960, and even the $829–$835 zone. Risk management is crucial for investors in this landscape.
