BNB Price Approaches a Key Level—Can It Clear the Hurdle?

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%.

Binance Coin (BNB) recorded a largely uneventful trading week, clocking in a net gain of 1.78%. The altcoin has experienced a major dual price trend in February with a price change of less than 1% in this period as the broader crypto market stalls.

Following recent developments, the BNB market appears poised for a potential price slide.

In an analysis post on Saturday, crypto analyst Ali Martinez provided an analysis of the Binance Coin price structure. During a price rally in mid-February, BNB recorded a gain of 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.

In his analysis, Martinez suggests that if BNB is displaying a deviation, the altcoin could soon experience significant losses. A deviation occurs when an asset’s price breaks above a key resistance level but fails to sustain this move, returning to its previous price range. A deviation can indicate market strength or a lack of momentum in the absence of a clear price breakout.

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 marks the midpoint of the asset’s current parallel trading channel.

In the presence of strong selling pressure, perhaps due to expectations for BNB to complete a range-bound movement, the token could fall to as low as $214, indicating a potential 73% decrease from current market prices. To invalidate this bearish sentiment, BNB would need to quickly reclaim $720, suggesting sufficient buying momentum to sustain an uptrend.

At the time of writing, Binance Coin trades 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 is trading below its 100-day Simple Moving Average (SMA) indicating 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.