Solana: Possibility of THIS trend propelling SOL to $225 is…
Having dropped to a low of $179, Solana [SOL] has experienced a moderate uptick to touch $220. Nevertheless, the cryptocurrency has retraced from that point. Currently, Solana is being traded at $206.
This highlights a 5.02% rise when looking at daily charts. Prior to these gains, SOl had been on a downward trend, declining by 14.12% on a weekly basis.
Following the recent price recovery, analysts have been discussing the likelihood of a sustained rebound. Notably, well-known cryptocurrency analyst Man of Bitcoin has hinted at a potential recovery, referring to the Fibonacci wave 3.
Market sentiment hints at…
In his assessment, ManofBitcoin observed that Solana’s price is progressing within wave-3 towards the positive side.
Typically, wave 3 is the most dominant and extended, often reaching 1.618x or even 2.618x the length of wave 1.
Therefore, should this uptrend hold, the possible target for SOL would be $225. However, if the cryptocurrency fails to maintain its position and loses momentum, wave three may fall short of expectations leading to a retreat.
Is a sustainable recovery in sight for Solana?
While the mentioned analysis paints an optimistic picture, it’s crucial to cross-verify other market signals and assess their implications.
According to CryptoCrypto’s evaluation, Solana has been gaining momentary upward momentum, which could stimulate some positive movement on its price charts.
For instance, Solana’s Futures Basis has remained favorable on Binance and Kraken. When this remains favorable, it indicates that futures contracts are trading at a premium compared to the spot price.
This mirrors bullish market sentiments as traders foresee price increases, thus, paying a fee to maintain their positions.
This bullish trend is reinforced by the dominance of long positions in the market.
Data from Coinalyze reveals that long positions make up 76.42% of daily timeframes. When a larger number of traders opt for long positions, it signifies their anticipation of a price recovery.
Outflows have surpassed inflows, signaling a higher number of investors withdrawing their SOL from exchanges than depositing them.
With a negative Spot Netflow, it indicates that traders are amassing and storing their cryptocurrency in private wallets, awaiting favorable conditions to re-enter the market.
Despite Solana’s recent decline in the past week, it’s not an isolated incident as the broader cryptocurrency market has also witnessed a downturn.
If the market remains positive, there’s a possibility for SOL to retake $219 and aim for a breakout at $223.
For the optimistic scenario to prevail, the cryptocurrency must remain above $200. Conversely, a probable correction could lead SOL to drop below $200 once more.