Binance Coin (BNB) has dumped well below $1,000, raising fresh questions for holders and traders. The asset is now priced around $900 after falling from a mid-October peak of around $1,370.

This drop has triggered new analysis on whether the move is a warning sign or a buying window.

Price Action and Key Levels

BNB’s fall below $1,080 confirmed a break in market structure. Crypto analyst Crypto Patel stated that a dip toward $880 was already expected. The price reached this area and rebounded slightly, but it still sits under the $1,000–$1,050 resistance zone, which was tested and rejected.

A longer-term trendline, which had held since the summer rally, has also broken. Patel pointed to the $770–$730 zone as a possible area for accumulation. He added, “Everyone panics when BNB dips… I look for entries,” and maintained a longer-term view that BNB could reach $5,000.

In a separate analysis, Henry shared a possible short-term recovery setup. On the 4-hour chart, a W-shaped pattern or double bottom has formed, with support near $900. If BNB breaks above $1,036, he expects a move toward $1,175.

“Double bottom is done, now it’s time to pump,” he said.

Momentum Signals

Momentum remains low. The Relative Strength Index (RSI) is at 38, which is near oversold levels but not low enough to confirm a strong reversal. Buying activity is limited, and the market lacks a clear direction.

The MACD, an indicator that follows trends, still indicates a bearish structure. The MACD line is situated under the signal line, and both are in the negative area. This setup points to continued downside pressure, with no sign of a trend reversal for now.

Meanwhile, sentiment remains mixed. According to Market Prophit, the crowd is bullish, while their model indicates bearish conditions. This split shows that traders and systems are not aligned on the next move.

However, netflow data shows a recent $2.06 million inflow to exchanges, which may suggest short-term selling. Over recent weeks, though, BNB has seen mostly outflows, meaning more tokens are moving off exchanges. This often happens when holders move assets into private wallets.

Distribution and Legal Context

As CryptoPotato reported earlier this month, data from YZi Labs shows that BNB supply is becoming more dispersed across the network. More tokens are now held in self-custody, with fewer stored on exchanges.

Simultaneously, the regulatory landscape concerning Binance has changed. Changpeng Zhao (CZ), the founder of Binance, was given a complete and unrestricted pardon by US President Donald Trump not long ago. Although some are of the opinion that this might ease the legal pressure on Binance, others doubt the action and its impact on the entire crypto market.

BNB remains under pressure, but interest in both short-term trades and long-term positioning continues as the market looks for direction.

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