Skip to content
- Solana (SOL) has fallen to a three-month low of $161, leaving traders who saw it at $293 in January frustrated.
- Santiment data shows market sentiment at its lowest in months, indicating a potential price bounce amid widespread pessimism.
- Solana may test resistance at $173; breaking this level could signal a trend reversal and the start of a recovery for SOL.
Solana (SOL) has recently set a three-month low price at $161, and this has affected the morale of traders. It has been particularly disappointing to those who traded in cryptocurrency when it was trailing near $293 in early January. However, the positive sentiment that has been associated with Solana has been left behind and there is some confusion as to its direction. At the moment it has created a low that marks the lowest price since the retracement at January 20 and as such the possibility of a lower price may not be far from reality.
Solana Price Reversal Potential
The analytical platform of Santiment shows that the current market sentiment is among the lowest for the past several months. The pressure is indeed apparent with discussion rates high and pessimism in existence a universal constant. These conditions have typically given a hint of a possible bounce as the market returns in the opposite direction of what is expected by a majority. Hence, while Solana still faces an uncertain future, the volume of negative sentiment gives the hint that the recovery of the price is possible.
With regard to some of the technical indicators, there is hope of a reversal in the nearest future. Solana has been trading in a bearish momentum characterized by descending triangles as shown in the chart below. Nonetheless, there is a significant gap in the price of SOL and the 4-hour Relative Strength Index (RSI) presence.
On the other hand the RSI presents higher lows which give me the impression that the selling pressure may be easing as the price drops. This divergence is an indication that a trend reversal situation could be near, it therefore gives some hope to those intending to enter the market.
Source: TradingView
Key Price Levels
Moving to the future, Solana’s price is highly likely to test the $173 as its main resistance point. If SOL can rise above this price, then it would establish that it is time to start buying up the asset. An attempt to break above this level would further indicate a possible change of trend where the bears have been dominant and the market may be on the verge of turning up. The next two critical barriers are $195.81 and $216.90 as these are the inversions that Solana has already faced before.
If SOL is to make an attempt of a breakout past these levels, it will point to the onset of an upward movement. For now, traders alongside investors will continue to follow Solana’s price movements with bated breath for improvement in the market which has quite been volatile.
