After reaching $175 on May 18th, Solana (SOL) experienced a price correction that led to a decrease in its value. Does this indicate a likelihood of SOL declining further in the upcoming days?
Solana come back to $175
Last week was a huge triumph for Solana, as the token’s price increased significantly. According to CoinMarketCap, SOL’s price increased by more than 20% over the last seven days, reaching $175.
At the time of writing, SOL was trading at $174.39, with a market capitalization of more than $78.2 billion.
The drop from $175 has a detrimental impact on the token’s social metrics. Its Weighted opinion fell substantially, indicating that unfavorable opinion about it was prevalent in the market.
Investors should not be discouraged, since a recent analysis indicated that SOL’s price might rise. Alex Clay, a famous cryptocurrency expert, recently tweeted about an unexpected development.
What to Expect in the Short Term
A spike in the indicator indicated that futures investors were purchasing SOL. According to Coinglass statistics, SOL’s Open Interest has also climbed, which may serve as a catalyst for the cryptocurrency’s weekly rally.
However, doubts remain. At press time, the coin’s fear and greed index was at 75%, indicating that the market was experiencing high greed. Such numbers frequently result in price decreases.
We then examined SOL’s daily chart to determine which direction it was headed.
The Relative Strength Index (RSI) showed a bullish reading of 64. However, the Chaikin Money Flow (CMF) moved in the opposite direction. ‘
In the event of a price correction, SOL’s price could potentially drop to $173.5, as liquidations would likely increase significantly, potentially serving as a support level. Further decline could lead to SOL’s price reaching $165.
Conversely, if SOL sustains its weekly bullish momentum, the token might surpass $180.
May 2024, Cryptoniteuae
