The BNB price has come under intense selling pressure, partly due to the ongoing crypto market sell-off but primarily due to the difficulties Binance, the world’s largest cryptocurrency exchange, is experiencing.
The token had fallen from $248 at the beginning of August to a fleeting $215 before the Friday sale. Along with the rest of the cryptocurrency market, BNB fell to a one-year low of $204.
According to the most recent report, the United States Department of Justice (DoJ) has launched a new investigation into the company led by Changpeng for purportedly violating the nation’s sanctions against Russia.
Binance is no stranger to controversies and inquiries from global regulators, which continue to harm the BNB price.
The US Department of Justice asserts that Binance resumed operations in Russia in 2022, following the imposition of sanctions in response to the invasion of Ukraine.
According to data collated externally and published in a WSJ report, Binance controls a substantial volume of trading in Russian rubles.
Customers can transfer funds from sanctioned Russian institutions to their Binance accounts via intermediary layers.
Binance also facilitates peer-to-peer trading activities involving Western-blacklisted banks.
Binance’s position was defended by a spokesperson who stated that the exchange “follows global rules and enforces sanctions” and, therefore, “has no relationship whatsoever with any institutions in Russia or elsewhere.”
Meanwhile, BNB is up 3% to $216 and exhibiting remarkable bullish resurgence indications. This sudden rebound from the $204 support could be attributed to the introduction of Binance Pay in Brazil to support contactless cryptocurrency payments.
Binance Pay supports over 70 cryptocurrencies, including BNB, ETH, and BTC, and offers consumers free transactions.
The cost-effective payment experience in Brazil now allows merchants to receive funds in either the local Brazilian Real or a cryptocurrency.
The four-hour chart reveals that a recovery is gaining momentum within a V-shaped formation. Moving Average Convergence Divergence (MACD) indicators have a positive outlook that investors could use to sustain the recovery.
The fact that the Relative Strength Index (RSI) is presently in the neutral region, despite having dropped into the oversold region earlier this week, supports the bullish outlook.
Maintaining higher support at $215 would indicate that investors have greater control over the subsequent direction of the BNB price.
The Fibonacci retracement levels applied to the chart suggest a possible 61.8% rebound from the $204 support level to the $230 resistance level.
However, traders may opt to begin recording profits at the 38.2% Fibo level, or $220.