- SOL’s oversold condition could offer a great buying opportunity, per analyst.
- Despite the weak market sentiment, SOL hit key confluence support at $175.
As a seasoned crypto investor with a knack for recognizing undervalued gems, I find the current state of Solana [SOL] quite intriguing. The oversold condition it finds itself in presents a potential buying opportunity that I can’t help but see the silver lining in.
In simpler terms, according to certain experts, Solana (SOL) has been excessively sold and its more than 30% drop might present a fantastic chance for purchasing.
Based on insights from the pseudonymous analyst known as Marty Party, the Relative Strength Index (RSI) of Solana’s daily price movements has fallen to levels similar to those seen around mid-2023. According to his analysis, this could have been an excellent opportunity to invest in Solana as a long-term holder.
Will $180 hold?
As an analyst, I’ve noticed that since reaching its peak in November, Solana (SOL) has seen a decline from approximately $264 to a low of $175. However, this pullback seems to have encountered a significant confluence area. If this region manages to hold, it could lend credibility to Marty’s thesis.
Throughout 2024, SOL’s dumps reversed at the 100-day EMA (Exponential Moving Average, blue). This pattern has repeated in June, July, and October.
Currently, the market has found a steady point after its recent dip, right at the moving average of $175. It’s worth noting that this level aligns with the 61.8% Fibonacci retracement level, calculated using September’s low points as a reference.
In general, price reversals often occur when prices reach levels that align with the golden ratio. If this pattern continues for SOL (Solana), it might hit a potential low around $175, with a possible range of about $160 either side.
As a crypto investor, I found that the general mood towards SOL remained pessimistic, potentially offering an opportunity for long-term investors like myself to acquire this digital coin at a reduced price.
But it’s also worth noting that this was the first time SOL sentiment turned negative since November.
So, how’s the market positioning at this key confluence level and weak sentiment?
According to Coinglass, over 82% of top traders in the Binance exchange had long SOL positions.
Read Solana [SOL] Price Prediction 2024-2025
Despite a minor dip from the 84% mark reached on the 19th of December, it indicated that the majority of investors remained optimistic about Solana’s chances for recovery.
Read More
- TRB PREDICTION. TRB cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- CAKE PREDICTION. CAKE cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- OM PREDICTION. OM cryptocurrency
- Dandadan Shares First Look at Season Finale: Watch
- OKB PREDICTION. OKB cryptocurrency
2024-12-23 04:07