Binance has been granted a license to operate in Dubai
Native token BNB is trading at the $270 support
BNB faces further decline if recovery stalls as bearish signals emerge
Binance BNB/USD continues to struggle despite gaining slightly on Thursday. The decline reflects macro concerns amid a rate hike by the Federal Reserve on Wednesday. As with most exchange-linked tokens, a dampened sentiment is hitting the price. The decline can be attributed to a fall in trading volumes.
BNB is, however, not the biggest loser in the market, as it trades just 2.13% in the past one week. The cryptocurrency trades at $270, compared to a high of $335 in mid-August. The decline was linked to profit-taking since BNB has an established resistance at $335.
On the positive side, Binance obtained a Minimal Viable Product license in Dubai on Tuesday. The license allows the crypto exchange to offer various digital asset services to investors in the country. Binance will also utilize the local banking channels, enabling it to expand digital money services. The latest development happened after Binance was granted a provisional license in March for an office in the UAE.
BNB entangled between a bearish trendline and support
Ava Financial Ltd operates the AvaFX and AvaTrade forex brands and all business associated with them. The company has a branch office in Dublin, Ireland, which enabled it to get an operational license from the Irish authorities.
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Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
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BNB has been trading on a bearish trendline since the August high. The token is now trading at a support of $270, making it an important zone for buyers.
Source – TradingView
BNB is recovering after touching the support. However, we remain cautious of price recovery at the current level. BNB formed a bearish pin bar at the support, in line with the month’s-long downtrend. The moving averages are also bearish on the token.
An RSI reading of 44 suggests that we are yet to enter the oversold zone for BNB. Should the token fail recovery at the current level, the next support is at $244.
BNB may continue with the downtrend if it fails to recover at $270. The token may settle at $244 as sentiment remains weak.