Binance Coin (BNB) Price Outlook: What’s Behind the Recent Decline?
The Binance Coin (BNB) token has seen a pullback for five consecutive days, despite a significant token burn on the network. BNB has fallen from a high of $611.4 on October 29 to a low of $562, marking its lowest point since October 14.
This decline aligns with a drop in the crypto fear and greed index, which has shifted from a “greed” level of 67 last week to a neutral reading of 55. Bitcoin, which recently surged to $73,500, also retraced to $68,430, impacting other major cryptocurrencies like Ethereum and Solana. Ethereum fell to $2,443, while Solana dropped below $160, and XRP slid to $0.50. Historically, such pullbacks are common when the fear and greed index trends downward.
U.S. Election Uncertainty Adds Pressure
One factor contributing to BNB’s decline is the looming U.S. election, in which Donald Trump will face Kamala Harris. Polls indicate a close race, with Harris leading by less than 1% on average, and the candidates nearly tied in Pennsylvania. Trump leads slightly in states like Georgia, Nevada, Arizona, and North Carolina, but these small margins suggest an unpredictable outcome.
In addition to polling, prediction markets have shown wavering confidence in Trump, with his odds on Polymarket dropping from a peak of 67% to 55% recently. The crypto market appears to favor Trump due to his promise of a lighter regulatory approach, which could include replacing Gary Gensler with a more conservative SEC chair. However, cryptocurrencies have historically performed well under both major U.S. parties.
Market Share and BNB Burn Impact
BNB’s recent decline also comes after a major token burn, in which developers removed 1.77 million tokens, worth over $1.07 billion, from circulation. While burns are intended to increase scarcity and thus support value, BNB has faced additional headwinds from Binance Smart Chain (BSC) losing some of its market share in the DeFi space.
According to DeFi Llama, BSC processed about $24 billion in token transactions in October—significantly lower than volumes handled by Solana, Ethereum, and Base. In the last seven days, BSC’s volume reached $5 billion, placing it as the fourth-largest DeFi chain, but Base is quickly catching up with $4.45 billion in total value locked.
BNB Price Forecast
The convergence of factors—market uncertainty ahead of the U.S. election, reduced crypto market sentiment, and BSC’s competitive pressures—suggests that BNB may face continued volatility. However, the impact of the recent burn could support price recovery over the longer term, especially if BSC can stabilize or regain DeFi market share.
BNB Price Analysis by TradingView
The daily chart reveals that Binance Coin (BNB) has pulled back over the past few days, following a retest of the significant resistance level at $605, which it has struggled to surpass since June of last year. This level marks the horizontal boundary of an ascending triangle pattern.
Additionally, $605 serves as the neckline of an inverse head and shoulders (H&S) pattern, a classic market reversal indicator.
Currently, BNB is trading between the 23.6% and 38.2% Fibonacci retracement levels. Given the inverse H&S pattern, a bullish breakout is likely, with the first key target being $605. A break above this level could signal further gains, with the next potential target at $720—BNB’s highest point this year and approximately 28% above the current price.
