- SOL was up by more than 5% in the last 24 hours.
- Most market indicators remained bullish on the token.
Solana [SOL] has fared well against the current bearish market, as its price rose by more than 5% in the last 24 hours, according to CoinMarketCap. Though this was a bullish sign, the token might witness a downfall, and here’s why.
Solana is pumping!
The ETF approval did hurt most cryptos’ prices, as their price charts turned red. However, Solana acted differently as it began a bull run.
At the time of writing, SOL was trading at $96.88 with a market capitalization of more than $41.8 billion, making it the fifth-largest crypto.
Since the crypto’s price increased, AMBCrypto planned to check its social metrics. Despite the price rise, SOL’s Social Dominance dropped last week, meaning that its popularity sank.
Its Weighted Sentiment also remained low, which meant that bearish sentiment around the token was dominant in the market.
Source: Santiment
Solana’s price to plummet further?
As per the latest dataset, SOL’s price was in a pattern that suggested SOL’s price might plummet. Crypto Tony, a popular crypto analyst, recently posted a tweet highlighting the scenario.
As per the tweet, Solana’s price might fall to $76, which might turn out to be a great opportunity for investors to accumulate more SOL.
A pullback to $76.00 would be a good buy opportunity if we can hold it of course pic.twitter.com/hqx4zw0DL6
— Crypto Tony (@CryptoTony__) January 13, 2024
Therefore, AMBCrypto checked SOL’s metrics to understand whether the possibility of SOL falling to $76 was viable. As per our analysis, the chances of SOL plummeting to the aforementioned level looked low as its Binance Funding Rate remained high.
This meant that derivatives investors were buying SOL at its higher price during press time. Additionally, SOL’s Open Internet increased alongside its price, hinting at a continuation of the current trend.
Source: Santiment
Realistic or not, here’s SOL market cap in BTC’s terms
To better understand what to expect from Solana, AMBCrypto checked SOL’s daily chart. Notably, SOL’s Money Flow Index (MFI) and Relative Strength Index (RSI) registered slight upticks, which suggested a potential price uptick.
However, the rest of the metrics were not so positive. Solana’s MACD displayed a clear bearish crossover. Its Chaikin Money Flow (CMF) took a southward path as well, indicating an end to the token’s bull rally soon.
Source: TradingView
