Solana stock is down 10%, but a ‘buy’ signal has emerged – will SOL stock rise?

  • Solana’s price is down nearly 10% in the past seven days.
  • SOL metrics looked bullish, but indicators indicated otherwise.

Bears took control of the market last week, sending the prices of several cryptocurrencies plummeting, including… Solana [SOL].

Although investors had to bear losses, things for SOL may change soon, as a buy signal has appeared on the token’s chart. Does this mean that SOL is preparing for a bullish rally?

Buy signal on Solana chart

Last week, Solana investors had a tough time as the price of the token fell by almost 10%. At the time of writing, SOL commerce Priced at $144.39 with a market capitalization of over $66 billion.

However, investors should not feel discouraged. Ali, a popular cryptocurrency analyst, recently published an article tweet Highlighting an interesting development.

According to the tweet, a buy signal is flashing on Solana’s TD sequence near the $141 mark.

Since the symbol was able to successfully hold this support level, it indicated that the chances of SOL recovering from last week’s losses are high.

AMBCrypto’s look at Data He revealed that as of press time, SOL’s Fear and Greed Index value stood at 37%, meaning the market was in a “fear” phase.

When the indicator reaches this level, it indicates that the token price may gain upward momentum soon.

Is a bull rally around the corner?

Since the above data hinted at a trend reversal, AMBCrypto then analyzed on-chain SOL metrics to better understand if a bullish rally was possible. According to our analysis, SOL’s funding rate has declined.

In general, prices tend to move in the opposite direction to the financing rate. Open interest decreased with its price, indicating a change in the ongoing downward trend of the price.

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Moreover, SOL’s trading volume also decreased, which also indicates higher prices in the coming days. However, investor confidence in SOL remained low.

This appears to be the case with low sentiment weighted, meaning that bearish sentiment around the symbol was dominant in the market.

Solana's morale likely plummeted

Source: Santiment

In fact, market indicators remained bearish. For example, the Relative Strength Index (RSI) registered a decline. Chaikin Funds Flow (CMF) also followed a similar downward trend.

Moreover, the MACD indicator showed a bearish feature in the market, indicating a further decline in the price of the token in the coming days.

Source: Trading View

Is your wallet green? Check the SOL profit calculator

Our look at Hyblock Capital data revealed that if the downtrend continues, SOL price could fall to $139.

However, if a trend reversal occurs, it will be important for Solana to cross the $145 level, where liquidation will rise sharply. An increase in liquidation often leads to short-term price corrections.

Source: Hyblock Capital

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