Binance Coin Critical Test: Will BNB Hold Or Plunge To $214?

According to data from CoinMarketCap, the Binance Coin (BNB) recorded a trading week with no significant events, resulting in a net gain of 1.78%. Amidst much uncertainty in the crypto market, the altcoin has experienced a major dual price trend in February resulting in a price change of <1% in this period. Following recent developments, the BNB market is in a precarious position hinting at a possible price slide.BNB Deviation Could Trigger A Drop To $380 Or LowerIn an X post on Saturday, crypto analyst Ali Martinez provided valuable insight into the Binance Coin price structure. During a price rally in mid-February, BNB rose by over 34%, breaking past the $720 resistance zone to reach a local peak of $723. However, the asset failed to hold above $720 and has since dipped as low as $650.Following this price pattern, Martinez postulates that if BNB is displaying a deviation, the altcoin could soon experience significant losses. For context, a deviation occurs when an asset’s price breaks above a key resistance level but fails to sustain this move reversing back into its previous price range. A deviation can indicate a market strength suggesting a lack of momentum in the absence of a clear price breakout.According to Martinez, if the Binance Coin is undergoing a deviation, market prices are likely to plummet with initial support zones set around $505. However, the first major support level for BNB bulls would be at $380, which represents the midpoint of the asset’s current parallel trading channel.Notably, in the presence of strong selling pressure, likely due to expectations for BNB to complete a range-bound movement, the token could fall to as low as $214 representing a potential 73% decline from current market prices. To invalidate this bearish sentiment, BNB would need to quickly reclaim $720, which would suggest sufficient buying momentum to sustain an uptrend.BNB Price OverviewAt the time of writing, Binance Coin exchanges hands at $668 after a 3.43% price increase in the past day. As earlier stated, weekly gains stand at 1.78% reducing the overall decline in the past 30 days to 3.13%.According to its daily chart, BNB’s price has failed to break above its 100-day Simple Moving Average (SMA) suggesting a downtrend in the short term. However, the asset’s Relative Strength Index is at 54.40 and heading upwards indicating potential for some immediate price growth before entering the overbought zone (70).With a market cap of $95.22 billion, BNB is ranked as the fifth largest cryptocurrency in the crypto market.