Overview
Solana (SOL) has experienced a notable surge of more than 5% in the last 24 hours. While most market indicators appear bullish on the token, there are concerns about a potential downturn.
Bullish Momentum
Solana has performed well against the current bearish market trends. Despite the recent approval of ETFs negatively impacting many cryptocurrencies, Solana initiated a bullish trend.
At the time of writing, SOL is trading at $96.88, with a market capitalization exceeding $41.8 billion, securing its position as the fifth-largest cryptocurrency.
Social Metrics
Despite the price increase, Solana’s Social Dominance witnessed a decline last week, indicating a decrease in popularity. The Weighted Sentiment also remained low, suggesting prevalent bearish sentiment in the market.
Potential Downturn?
Analysts, including Crypto Tony, have raised concerns about a possible downturn in SOL’s price. There are speculations that the price may fall to $76, presenting a potential accumulation opportunity for investors.
However, a check on SOL’s metrics reveals a low likelihood of reaching $76. The Binance Funding Rate remains high, indicating derivatives investors are buying SOL at its current higher price. SOL’s Open Internet also increased, suggesting a continuation of the current trend.
Technical Analysis
An analysis of SOL’s daily chart reveals mixed signals. While the Money Flow Index (MFI) and Relative Strength Index (RSI) show slight upticks, indicating potential upward movement, other metrics are less optimistic. The MACD displays a clear bearish crossover, and the Chaikin Money Flow (CMF) points southward, suggesting a potential end to the current bullish rally soon.
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