BNB price has come under intense selling pressure, partly due to the ongoing rout across the crypto market but mainly due to the troubles Binance, the largest cryptocurrency exchange is facing.
The sell-off on Friday found an already battered token, that had plunged from $248 in early August to a brief pit stop at $215. In tandem with the rest of the crypto market, BNB plummeted to a one-year low of $204.
According to the latest report, the United States Department of Justice (DoJ) has launched another investigation into the Changpeng Zhao “CZ” led company for allegedly violating the country’s sanctions on Russia.
BNB Price Attempts Recovery Despite US DoJ Investigation
Binance is not new to controversy and investigations from regulators around the world, a situation that continues to negatively impact BNB price. The US DoJ argues that following the enaction of sanctions on Russia in 2022 due to the invasion of Ukraine, Binance resumed operations in the country.
Based on data compiled externally and shared in a WSJ report, Binance commands substantial trading volume in Russia Rubble. Intermediary layers enable customers to move funds from sanctioned banks in Russia, swapping them into Binance balances. Binance also supports peer-to-peer trading activities that include banks already blacklisted by the West.
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Binance through a spokesperson defended its position saying the exchange “follows the global rules and enforces sanctions…” and therefore has “no relationship with any banks whatsoever, in Russia or elsewhere.”
Meanwhile, BNB is up 3% to $216 and showing signs of a remarkable bullish comeback. This knee-jerk recovery from support at $204 could be attributed to Binance Pay’s launch in Brazil to support contactless crypto payments.
Binance Pay supports more than 70 cryptocurrencies including BNB, ETH, and BTC, and features zero transaction fees for users. The cost-effective payment experience, now in Brazil allows merchants to enjoy flexibility by choosing to receive money in the native Brazilian Real or cryptocurrency.
The four-hour chart shows a recovery building momentum within a V-shaped pattern. Indicators like the Moving Average Convergence Divergence (MACD) have a positive outlook with which bulls could tap to sustain the recovery.
Validating the bullish outlook further is the Relative Strength Index (RSI) currently in the neutral area, although it had dived into the oversold region earlier this week. Holding onto higher support at $215 would imply that bulls have more control over the direction BNB price takes next.
The Fibonacci retracement levels applied to the chart hint at a possible 61.8% rebound from support at $204 to $230. However, traders may decide to start booking profits at the 38.2% Fibo at $220.
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