HomeNewsSolana's Price Rally Shows Signs of Potential Correction

Solana’s Price Rally Shows Signs of Potential Correction

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  • On-chain data shows increased long/short ratio for Solana, indicating strong bullish sentiment among traders.
  • Technical indicators suggest possible future price movements; a correction could see Solana’s price fall to around $141.

Over the past week, Solana experienced a price surge of over 9%, peaking at $145. Recently, there was a minor retraction in its price to $144.8, while its market capitalization remained above $67 billion.

SOL_1D_graph_coinmarketcap (1)

This minor retraction took place against the backdrop of growing positive sentiment in the cryptocurrency market.

Recent data from ETHNews shows a 4% rise in Solana’s value in the last 24 hours. Despite these gains, indicators from Santiment suggest an increase in fear of missing out (FOMO) among traders, which historically has often led to a reversal of price gains.

Source: Santiment

While Solana experienced a price increase, Avalanche (AVAX) also saw a rise, although without a significant increase in FOMO, suggesting it might face less immediate volatility. According to on-chain data from Coinglass, there has been an increase in the long/short ratio for Solana, typically an indicator of strong bullish sentiment among traders.

Coinglass’s data revealed that SOL
Source: Coinglass

Nevertheless, the fear and greed index for Solana is at 56%, indicating that the market might be entering a phase of greed. This level often precedes a market correction.

Solana Fear and Greed Index

The Bollinger Bands indicate that Solana is moving into a less volatile zone, and the Relative Strength Index (RSI) shows a decrease after a significant climb, which could suggest a forthcoming decline in Solana’s price.

Source: Tradingview

Further, while the Chaikin Money Flow (CMF) indicates an inflow of capital, suggesting sustained interest, the Moving Average Convergence Divergence (MACD) confirms a bullish crossover, hinting at possible ongoing price increases.

Source: Hyblock Capital

Despite these complex signals, ETHNews analysis from Hyblock Capital’s data suggests that if the bullish trend continues, Solana could surpass $150 soon. Conversely, a market correction could lead to a drop to around $141. 

Given these data, investors should monitor these developments closely, as they could affect Solana’s pricing in the near future.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628