- Solana sees a huge bearish trend following a market-wide correction.
- Indicators suggest low chances of a “Solana Summer” revival in the short term.
As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of bull and bear markets. And right now, I can’t help but feel a pang of disappointment as I watch Solana (SOL) join the ranks of the bearish coins following the recent market-wide correction.
Last week, the term “Solana Summer” became a popular topic of conversation due to SOL‘s extraordinary market achievements. Its associated meme coins brought instant wealth to many individuals.
Despite the broader market experiencing a significant sell-off after the Ethereum ETF was approved, Solana unexpectedly follows suit and joins the downtrend.
Why is Solana down?
As a crypto investor, I’d say: “I believe the primary cause of Solana’s current downturn is the broader market correction. Many experts share my view that this trend, similar to what happened with Bitcoin ETFs, is likely to be short-lived.”
As a researcher studying SOL‘s price action, I observe that the token’s daily chart reflects a predominant downward trend. With each passing day, SOL records lower highs and lower lows, indicating an increasing selling pressure. This trend positions bears in a favorable position atop the market.
The volume remains fairly consistent, but there are peaks that align with notable price decreases. A high volume during a declining trend can indicate robust selling activity, reinforcing the downward market trend.
Lately, Solana (SOL) has made a small comeback, reaching approximately $165.25. However, considering the ongoing bearish trend, it’s uncertain whether this rebound will last.
Based on current trends and volume patterns, the near-term forecast indicates a bearish stance for Solana (SOL) unless it successfully surpasses the resistance level at $166 and maintains that position. If SOL fails to do so, it is expected to encounter further tests of lower support levels without any clear signs of reversal.
If there’s any chance for a price reversal, it would necessitate a significant surge in purchasing activity and breaking through previous resistance points. This kind of market force would need to be driven largely by bullish sentiment.
What does social sentiment say?
Traders and investors currently express a high level of fear towards Solana, as indicated by the Fear and Greed Index, which stands at 25%. This suggests that there is a significant amount of bearish sentiment in the social sphere regarding this cryptocurrency.
As a cautious crypto investor, I’m feeling uneasy due to multiple bearish signals. The turbulence in the market is particularly concerning, as is the low trading volume and weak impulse. Moreover, there’s a noticeable decrease in search trends related to cryptocurrencies, which could be an indication of waning interest from potential investors. These factors collectively suggest a lack of confidence and reduced market activity.
The technical indicators remain neutral, providing no strong counterbalance to the bears.
Read Solana’s [SOL] Price Prediction 2024-25
As a crypto investor, I’ve noticed that there’s been a lot of negative chatter about Solana on social media recently. This bearish sentiment reflects a growing discontent among larger stakeholders, who have been selling off their holdings in droves. These whale activities are putting additional pressure on the Solana market.
As things stand, the odds of a Solana Summer seem really low.
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2024-05-24 21:11