Solana’s performance in the market has been challenging recently, with investors experiencing losses. But there are signs that a positive trend may be on the horizon, as a bullish pattern has emerged on the token’s price chart.
Potential Movement for Solana
The latest data from CoinMarketCap shows that SOL has dropped by more than 8% over the past week. The bearish trend persisted in the last 24 hours, resulting in a slight decrease in its value.
Currently, SOL is being traded at $142.84, with a market capitalization exceeding $66 billion.
A notable tweet by Curb, a well-known crypto analyst, has suggested an impending price surge for Solana.
According to the tweet, SOL has been consolidating for several weeks, following which it entered a bullish pennant pattern. A breakout above this pattern has the potential to drive the token to new price highs.
Is Solana Poised for a Rally?
With Solana displaying indications of a potential price increase, CryptoCrypto has decided to delve into the on-chain metrics of the token for further insights.
Based on our analysis of Santiment’s data, SOL’s Weighted Sentiment witnessed a significant decline last week, suggesting a growing bearish sentiment surrounding the token.
Despite this, Solana’s Social Volume has been increasing, indicative of its popularity within the crypto community. Furthermore, the token’s trading volume has decreased lately, coinciding with its price decline.
A drop in price coupled with decreasing volume often suggests a possible turnaround towards a bullish trend.
As of the current moment, Solana’s fear and greed index stands at 54%, indicating a neutral market sentiment.
These developments signal potential price movements in either direction.
Consequently, CryptoCrypto examined Solana’s daily chart. Concerningly, the technical indicator MACD exhibited a bearish bias in the market. Moreover, the Relative Strength Index (RSI) also showed a downward trend.
Both these indicators imply a potential price decline in the days ahead. In such a scenario, investors may anticipate the token’s price dropping to $127.
However, if bullish momentum prevails, SOL could embark on an upward trajectory towards $162 in the near future. A breakout above this level could propel the token to $187.