Solana’s price has been stagnant recently, experiencing a “death cross” and bearish dominance. However, there is still potential for recovery if bullish triggers emerge. The cryptocurrency has been trading between $158 and $173 for the past two weeks, with the 50-period moving average crossing below the 200-period moving average, indicating bearish sentiment in the short term.
Despite the bearish trend, the RSI is around 64, showing some buying momentum but not yet in the overbought zone. Social volume and dominance for Solana have declined, suggesting waning interest from the crypto community. The derivatives market also reflects uncertainty, with a decrease in trading volume and an almost equal preference for long and short positions.
On certain exchanges like Binance and OKX, there is a more bullish sentiment among traders, with higher long/short ratios. The concentration of liquidations, particularly short liquidations during price spikes, indicates a market that is susceptible to sudden bullish runs. This could potentially lead to a small rally if external factors or market sentiment provide enough bullish momentum.
In conclusion, Solana’s price outlook remains uncertain as it hovers between key support and resistance levels. While the current bearish dominance and technical indicators suggest a downward trend, there is still room for a potential recovery if bullish triggers emerge. Traders and investors should closely monitor market sentiment and external factors that could influence Solana’s price movements in the near future.
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