BNB Drops to $895 Amid Weak Technicals and Controversial Trump Pardon of CZ
Binance Coin (BNB) continued its downward trajectory, sliding to $895 on November 17, as technical signals flashed bearish momentum and investor confidence waned. The decline marks an extension of the token’s ongoing weekly slump, with BNB now firmly trading under a key psychological support level.
The latest plunge reflects broader stress within the cryptocurrency market, particularly among large-cap assets. BNB’s price drop follows a 24-hour pullback that intensified selling pressure, as evidenced by a sharp increase in trading volumes. At the same time, the token’s market capitalization declined, indicating that investors may be pulling out of the asset in response to mounting regulatory and reputational concerns.
Adding to the negative sentiment is the political controversy surrounding Binance founder Changpeng Zhao, also known as CZ. Former U.S. President Donald Trump granted Zhao a pardon after he served a four-month prison sentence—an action that has sparked allegations of favoritism and raised eyebrows across political and financial circles. Critics cite the timing of the pardon and Zhao’s previous financial dealings with entities linked to Trump as potentially problematic.
The market reaction was swift. Technical analysis reveals a continued pattern of lower highs and lower lows—a classic signal of a persistent downtrend. BNB has struggled to regain lost ground, repeatedly failing to breach a crucial resistance level that once served as strong support. This inability to reverse the trend has further dampened investor sentiment.
The Relative Strength Index (RSI), a key momentum indicator, remained in neutral territory but failed to break above the midpoint throughout the week. This suggests that bullish momentum is weakening and that buyers are not yet stepping in with conviction. Although the RSI hasn’t entered oversold territory, its downward trajectory could signal an impending sell-off if the trend continues.
Moreover, Binance’s reputation has taken a hit following investigative reports linking the exchange to over $28 billion in suspicious transactions over the past two years. Journalists uncovered that significant amounts of illicit funds—originating from hackers, scammers, and even North Korean cybercriminal groups—have allegedly been laundered through Binance and other major platforms like OKX. These revelations have amplified calls for tighter regulation and greater transparency within the digital asset industry.
Despite the controversy, Binance continues to expand its operations. In May, the company entered into a $2 billion agreement with a Middle Eastern investment fund, reportedly using digital assets from World Liberty Financial, a firm associated with the Trump family. This deal coincided with Zhao’s application for a presidential pardon, further fueling speculation about potential conflicts of interest.
Trump has since denied any personal connection to Zhao, stating he was unaware of who the Binance founder was. Nonetheless, the optics of the situation have intensified scrutiny on both Binance and the wider cryptocurrency ecosystem.
The broader crypto market has not been immune to volatility. In the last 41 days alone, over $1.1 trillion in market capitalization has been wiped out, driven in part by excessive leverage and mounting regulatory pressures. Bitcoin, Ethereum, and other major tokens are also experiencing sideways or negative price action, mirroring the uncertainty afflicting BNB.
Looking ahead, analysts suggest that BNB must reclaim support above the $950–$1,000 range to reverse its bearish trajectory. Failure to do so could open the door to further declines, potentially testing support near $850 or even lower if selling accelerates. In the short term, much will depend on how investors digest the ongoing controversies and whether Binance can restore trust in its platform.
Institutional confidence may also be at risk. As digital asset firms strive to meet increasingly stringent compliance standards, Binance’s alleged involvement in money laundering activities could deter major players from engaging with the platform. This could lead to a shift in trading volumes toward more regulated exchanges, altering the competitive dynamics within the industry.
For retail investors, the current climate underscores the importance of risk management. With political factors now intersecting with market movements, crypto traders are navigating an environment that is as much about perception as it is about fundamentals. The CZ pardon saga is a prime example of how external events can rapidly alter the sentiment around a token—even one as established as BNB.
Technical traders are closely watching for signs of a momentum reversal. A sustained move above the 50-day moving average could signal a potential recovery, but until then, most indicators point to continued weakness. Volume spikes during sell-offs further imply that panic selling may not yet be over.
Meanwhile, Binance has made efforts to reassure users and regulators. The company has increased its transparency reports and pledged to bolster compliance measures. However, the effectiveness of these initiatives remains to be seen, especially as global watchdogs ramp up pressure on crypto platforms.
In conclusion, BNB’s recent decline is the result of a complex interplay between technical weakness, political controversy, and diminishing investor confidence. Until clarity emerges both from a regulatory standpoint and within the market itself, BNB may continue to face headwinds in regaining its former highs.