BNB, the native token of Binance, the world’s largest crypto exchange, has recovered from a one-year low of $204 to $216, despite facing a new investigation by the US Department of Justice (DoJ) over alleged sanctions violations in Russia.
BNB has been under heavy selling pressure due to the ongoing crypto market slump and the regulatory troubles that Binance is facing.
US DoJ investigates Binance over Russia sanctions
According to a recent report, the US DoJ has launched another probe into Binance for allegedly violating the US sanctions on Russia.
The DoJ claims that Binance resumed its operations in Russia after the US imposed sanctions on the country in 2022 due to its invasion of Ukraine.
The report cites data compiled externally and shared by the WSJ, which shows that Binance has a substantial trading volume in Russian Ruble.
The report also alleges that Binance uses intermediary layers to enable customers to move funds from sanctioned banks in Russia to Binance balances.
Moreover, Binance supports peer-to-peer trading activities that involve banks that the West already blacklists.
Binance, through a spokesperson, defended its position, saying that the exchange “follows the global rules and enforces sanctions…” and that it has “no relationship with any banks whatsoever, in Russia or elsewhere.”
BNB recovers from support at $204
Meanwhile, BNB has shown signs of a remarkable bullish comeback, rising 3% to $216. This recovery from support at $204 could be attributed to Binance Pay’s launch in Brazil to support contactless crypto payments.
Binance Pay supports over 70 cryptocurrencies, including BNB, ETH, and BTC, and features zero user transaction fees.
The cost-effective payment experience, now available in Brazil, allows merchants to choose whether 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, which could help bulls sustain the recovery.
Further validating the bullish outlook is the Relative Strength Index (RSI), which is 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 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.
