Santiment Analysis: Solana (SOL) Shows Quick Recovery Post-Selloff, Faces Key Resistance Levels Amid Market Speculation
Crypto News – In a recent update, blockchain analytics firm Santiment disclosed a rapid recovery in the altcoin market following the latest widespread selloff. Among its peers, Solana (SOL) has notably distinguished itself, swiftly climbing back over the $71 threshold. Santiment’s analysis indicates that SOL’s ascension is occurring at a pace faster than most other altcoins.
However, despite the current robust performance of SOL, Santiment advises caution. The platform suggests that a slight tempering of the prevailing optimistic sentiment is necessary before SOL can embark on a substantial rally. Further observations by Santiment hint at a possible surge in FOMO, particularly linked to the recently publicized airdrops on the Solana network.
As of the latest updates, SOL ranks among the few cryptocurrencies that have managed to secure gains in the last 24 hours. Insights from CoinMarketCap, a leading cryptocurrency market tracker, reveal a 1.16% rise in SOL’s value, positioning the altcoin at a trading price of $70.34.
This recent upturn contributes to SOL’s continuous positive performance over the week, culminating in a noteworthy weekly gain of 16.77%.
Currently, SOL is navigating a crucial support level at $70. A potential fall below this mark could see its value dip to approximately $60, aligning with the lower boundary of a medium-term positive pricing channel established on its daily chart. A breach below this channel might expose SOL to the risk of descending to the subsequent significant support level at $49.65.
Conversely, this bearish outlook could be negated if SOL successfully closes its next two daily candles above the $70 mark. In such an optimistic scenario, the cryptocurrency might initiate a bullish trajectory, potentially propelling its value towards the $100 milestone.
Technical indicators, including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), imply that the downturn in SOL’s price may not have fully played out. Notably, the RSI line has descended below the RSI Simple Moving Average (SMA) in the past 48 hours, signaling a significant bearish development that suggests a shift in market control from buyers to sellers. Additionally, the MACD line’s movement towards the MACD Signal line intimates a possible continuation of the downward trend.
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