Solana
Is a resumption of “Solana Summer” possible in a context of downward trends?
- Solana sees a huge downtrend following a market-wide correction.
- Indicators suggest low chances of a “Solana Summer” resumption in the short term.
The phrase “Solana Summer” was on everyone’s lips last week as GROUND achieved incredibly remarkable market performance. His memecoins were making people millionaires overnight.
But while the rest of the market recovers from the sharp correction that followed the Ethereum ETF Approval, Solana Unusually Joins the Bears.
Why is Solana down?
The short and straightforward reason why Solana is down is the market-wide correction. Experts believe that, as for Bitcoin [BTC] ETFs will be temporary.
The daily chart of SOL shows a dominant bearish trend, with the token gradually reaching lower highs and lower lows. This trend means that there is strong selling pressure, so the bears are sitting comfortably at the top.
Volume is relatively stable, with peaks corresponding to significant price drops. High volume during a downtrend often confirms bearish momentum, suggesting strong seller participation.
Source: TradingView
The most recent move shows a slight attempt at recovery, with SOL bouncing back to around $165.25. However, given the prevailing downward pressure, it remains to be seen whether this recovery can be sustainable.
Given the trend and volume momentum, the near-term outlook remains bearish unless SOL can convincingly break through resistance at $166 and hold. SOL will likely continue to test lower supports without such a reversal signal.
Any potential reversal would need to be supported by a massive increase in buying volume and a break above recent resistance levels, which would require massive pressure from the bulls.
What does social sentiment say?
Social feelings also look bad for Solana. The Solana Fear and Greed Index indicates “fear” sentiment at 25%, meaning there is strong bearish sentiment among traders and investors.
Source: CFGI
This mood of apprehension is driven by several bearish indicators, including very negative trends in volatility, volume, momentum and research. These indicators reflect a lack of confidence and a decrease in business activity.
Technical indicators remain neutral, not providing a strong counterweight to the declines.
Read by Solana [SOL] Price prediction 2024-25
Additionally, bearish social media sentiment and whale activities show widespread disapproval and disinvestment from larger stakeholders, putting further pressure on the Solana market.
As things stand, the chances of a Solana Summer seem very low.
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