Solana
Solana Hits $175 and Faces a Pullback: What’s Next for SOL?
- The price of Solana has increased by more than 20% in the last seven days.
- If the bull rally resumes, then SOL could surpass $180.
Solana [SOL] managed to reclaim $175 on May 18, but soon witnessed a price correction, driving down the value of the token. Does this mean that SOL will fall further in the coming days?
Let’s take a look at the current state of SOL to find out.
Solana comes in at $175
Last week was a huge success for Solana as the price of the token increased significantly. According to CoinMarketCapSOL’s price has surged more than 20% in the past seven days, allowing it to reach $175.
However, SOL was unable to hold on to that position as it took a dive.
At the time of writing, SOL was trading at $174.39 with a market cap of over $78.2 billion.
The drop from $175 also had a negative impact on the token’s social metrics. Its weighted sentiment fell sharply, meaning bearish sentiment towards it was dominant in the market.
Nevertheless, its Social Volume remained stable.
Source: Santiment
Investors should not become discouraged, as recent analysis suggests that the price of SOL could skyrocket. Alex Clay, a popular crypto analyst, recently published a Tweeter highlighting an interesting development.
On a monthly time frame, SOL displayed a rounded bottom pattern. If this trend holds true, investors could soon see SOL reach new highs.
What to expect in the short term
AMBCrypto then analyzed SOL’s on-chain metrics to see if investors should expect a massive surge in the near term. According to our analysis, SOL’s funding rate had increased significantly.
An increase in the metric meant that derivatives investors were buying SOL. According to Coinglass’ dataSOL open interest has also increased, which could boost the coin’s weekly rally.
Source: Santiment
However, concerns remain. The room fear and greed index had a value of 75% at the time of publication, meaning the market was in a phase of extreme greed. Such figures often lead to price reductions.
We then analyzed the daily chart of SOL to see which direction it was heading.
The Relative Strength Index (RSI) looked quite bullish, as it had a reading of 64. However, the Chaikin Money Flow (CMF) moved in the other direction. ‘
Additionally, Solana price had touched the upper limit of the Bollinger Bands, indicating a possible price correction.
Source: TradingView
Is your wallet green? Check SOL Profit Calculator
If a price correction occurs, SOL price could fall to $173.5 as the liquidation would surge sharply, which could act as support. Further decline could push SOL price to $165. ‘
However, if SOL manages to continue its weekly bull run, then the token could surpass $180.
Source: Hyblock Capital