What to Know:
- BNB drops 12% after reaching $1,375 ATH amid market sell-off.
- $600M BNB treasury and $45M airdrop aim to boost confidence.
- Key support at $1,141, failure could trigger deeper losses.
BNB has taken a sharp drop falling about 12% in the past 24 hours, this decline comes just after BNB hit an all-time high this week. The token’s fall shows how quickly sentiment can shift when markets correct, and it underscores that even big backing and headlines may not prevent pullbacks.
Why BNB’s Price Tumbled
1. Market Correction
The broader crypto world is seeing a dip. The total market cap dropped about 4.28% (nearly $160 billion), with Bitcoin down ~2.78% and Ethereum down ~1.5%. This created pressure across altcoins too. In the last two days, $360 million in long positions were liquidated in derivatives markets, accelerating the sell-off.
Because BNB tends to move in step with Bitcoin , it suffered more in this downturn. The Crypto Fear & Greed Index also cooled falling from “Greed” into “Neutral” territory signaling that traders were pulling back from risk. During this period, BNB saw a 24h turnover ratio of ~6.03%, higher than Bitcoin’s ~4.2%.
2. Profit-Takers Take Gains
BNB’s run earlier this week was dramatic. It rose to $1,375, a fresh all-time high, pushing year-to-date gains past 129%. But such sharp climbs often invite profit-taking. When prices get overstretched, many holders sell to lock in gains. That appears to be happening now. Records show that $47 million in BNB moved to exchanges right after it peaked, which generally signals distributions.
Also supporting this idea is the 14-day RSI, which had climbed to ~76 a level widely considered “overbought.” History shows that when assets get overbought, pullbacks often follow. If this correction deepens and BNB can’t hold key supports like $1,141 which is the 50% Fibonacci retracement, more losses may lie ahead.
3. Key Support Levels Break
Technically speaking, BNB has lost ground in critical areas. It failed to hold $1,262 the 23.6% Fibonacci retracement and $1,244 (its 7-day simple moving average) The MACD histogram turned negative (around –7.26), which is another sign that bearish momentum is growing.
If these losses continue, BNB may test more important zones: $1,141 is a major line in the sand. Below that lies $1,009, which would be a much deeper drop. On the upside, a reclaim of $1,195 or the area around $1,300 would help stabilize sentiment.
Big Moves Backing BNB
Even as BNB falls, there is news showing serious bets on the token’s long-term strength. Investment bank China Renaissance is reportedly in talks to raise $600 million for a new public vehicle (a treasury) dedicated to holding BNB. “YZi Labs,” the investment arm connected to Binance, plans to contribute.
If this goes through, this would be one of the largest institutional bets on BNB, and could bring renewed confidence and capital into the token. Some see this as a sign that major players, even after this pullback, believe in BNB’s long-term potential.
On the ecosystem front, BNB Chain and partners like Four Meme, PancakeSwap, Binance Wallet, and TrustWallet are launching a $45 million “Reload Airdrop” across memecoins. Over 160,000 addresses that traded memecoins recently will share this airdrop.
This effort is meant to show that builders and users are not giving up, even under price pressure. The first round of airdrops begins this week, with full distribution expected by early November 2025.
Final Word
BNB’s drop of 10–12% after reaching a new all-time high just shows how quickly people’s feelings about crypto can change. The drop was caused by a mix of a market correction, people selling after making a lot of profit, and technical problems.
Still, the proposed $600 million backing from China Renaissance and the $45 million memecoin airdrop show that people still believe in BNB’s ecosystem. That being said, BNB needs to find support at key levels and show that buyers are ready to buy again for this rally to last.
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