Binance Coin BNB/USD maintains a downtrend
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
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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.