Optimism grows: BNB is almost ready to rally

BNB has been falling for the past 14 days, but has not lost critical support. Bullish investor sentiment is fueling a possible cryptocurrency rally

Let's break down what to expect from BNB in the near future and what levels to watch out for.

BNB owners are not discouraged

The Sharpe ratio, which tracks the risk/return ratio, is now at -10.72%. Negative values usually indicate high volatility and risk, but can also portend upside opportunities.

In the case of BNB, historically negative Sharpe Ratio values have often been followed by periods of growth. Thus, now may be a strategic time for investors who want to enter BNB positions.

The weighted sentiment index supports this assumption. The index signals that there is now a growing optimism among BNB holders that a recovery is imminent.

In parallel with optimism, buying pressure is also growing, which may support a potential rebound in BNB.

Which five DePIN tokens are the best to invest in this September, told in a special feature.

BNB outlook: great prospects

At the time of writing this analysis, BNB is trading at $501, having lost about 5% overnight. Historically, the price range between $520 and $497 has often been a consolidation zone before the rally. If the pattern works this time too, the cryptocurrency could see a recovery phase ahead.

The key resistance at $520 is the key, a break of which will open up growth opportunities to $550 and above. In case of further growth, the next most important resistances will be the levels from $575 to $619.

However, unsuccessful attempt of breakthrough will force BNB to stay in the current range. Such development of events can weaken investors' optimism and provoke further falling of the rate. The loss of support at $497 will be especially negative - a drawdown below this level will cancel the bullish thesis and entail even more significant losses.