SOL Price Dips: Solana Recovery on the Horizon? Analysts Track Rising Short Positions

SOL Price Dips 20%, Funding Rate Points to Recovery

The price of Solana has fluctuated significantly in recent weeks and has had difficulty breaking through resistance at $160. SOL saw a notable 20% drawdown at the end of August following several unsuccessful tries to break through this barrier. Many investors are wary after this loss, but recent changes in sentiment point to a possible recovery. Important indicators now suggest that the price of Solana may be on the verge of recovering, which gives experts and traders hope.

The recent decline in funding rate is a critical component in evaluating Solana’s prospects for recovery. This measure of holding costs in the futures market frequently indicates changes in investor mood. According to the study, the funding rate is going negative, according to lead analyst Brian Quinlivan at Santiment.

SOL has always been very sentiment driven, so we’re keeping an eye on its Binance funding rate. Ideally, we see traders trying to short (bet against) the asset, and those liquidations can be a good catalyst to start its next rally. Right now, there has been a pattern of increasing shorts,

Quinlivan

SOL Faces Key Resistance at $137, CMF Indicator Suggests Price May Surge

Additionally, a significant pattern for SOL has been established by the Chaikin Money Flow (CMF) indicator, which calculates the cumulative movement of money into and out of an asset. It has been observed that Solana usually recovers in seven to ten days when CMF falls below -10.0. According to this pattern, the recent drops may be short-lived, and prices may rise in the near future due to higher inflows.

Solana has rebounded from the $126 support level and is now trading at $132.37. SOL must overcome local resistance at $137 in order to continue rising. Reaching the $160 milestone would be made possible by achieving this. A move to $160 may be the next step forward, as historical data indicates that Solana has gone through comparable consolidation phases between $126 and $160.

• Lately, Solana has been circling around the $137 resistance level.
• Should SOL be unable to cross this barrier, it may proceed to move sideways.
• This standstill may undermine the optimistic price estimate and stifle the bullish enthusiasm.

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