Exploring the Potential of Solana as It Approaches the $175 Support Level
Among the top altcoins, Solana [SOL] has recently experienced a significant pullback exceeding 30%, leading some analysts to view this as a promising opportunity for investors.
Analyst Marty Party, who operates under a pseudonym, noted that SOL’s daily RSI (relative strength index) has reached levels not seen since mid-2023. He believes that this represents an attractive entry point for long positions in the altcoin.
Can the $180 Level Sustain?
Following its peak in November, SOL has retraced from $264 to a low of $175. However, this decline has intersected with a crucial area of convergence that, if maintained, may lend support to Marty’s analysis.
Historically, SOL’s retracements during 2024 have consistently reversed near the 100-day EMA (Exponential Moving Average, depicted in blue), a trend observed in June, July, and October.
At present, the recent downturn has found stability around the moving average ($175). Notably, this level aligns with the 61.8% Fibonacci retracement level from September’s lows.
Reversals in price trends often occur at the golden ratio level. Therefore, should history repeat itself, SOL could find a floor at $175, possibly dipping to around $160.
Despite prevailing negative market sentiment towards SOL, this environment may present an opportune moment for long-term investors seeking discounted positions in SOL.
Interestingly, this marks the first instance of sentiment turning bearish on SOL since November. The question that arises is how market participants are positioned at this critical juncture characterized by weak sentiment.
According to Coinglass data, more than 82% of leading traders on the Binance exchange are holding long positions in SOL.
While this represents a slight decrease from the 84% recorded on December 19, it indicates that a significant majority of traders remain optimistic about SOL’s prospects for recovery.