From a four-month low of $110, solana has gone up 25% to $140 as the market has largely recovered. Even so, market signs show a mixed picture as bulls try to keep the momentum going.
During the latest market drop that saw Bitcoin fall below $50,000 for the first time in almost six months, Solana’s value dropped sharply by 40% over eight days. This is like a losing run that happened in March 2023 and caused the price to drop to $16. But recent activity shows that Solana might be able to get better.
Solana Hits $144 Then $140
The price of the cryptocurrency quickly hit $144 and then went back up to $140 earlier today, showing that bullish sentiment is still strong despite small drops. Solana is worth $140 right now, which is 7% more than it was 24 hours ago.
Kaleo, a market analyst, talks about how strong Solana is against Bitcoin. He says that the SOL/BTC ratio is showing strength and could hit new highs, with a goal ratio of 0.01. The Accumulation/Distribution measure is also going up, which means investors are becoming more interested. It is now at 297.43 million SOL.
On the other hand, the Directional Movement Index (DMI) shows a range of results. There is less pressure to buy now that the positive directional indicator (+DI) has dropped to 15.08. The negative directional indicator (-DI), on the other hand, has gone up to 35.83, which means there is still pressure to sell. The Average Directional Index (ADX) is at 28, which shows that things are still going down.
Trader JohnnyB believes Solana could drop even more before it fully returns. That any drop could be a “generational buy opportunity” for long-term investors is what he calls it.To sum up, Solana’s healing looks good, but it’s best to be careful. The Accumulation/Distribution metric supports the idea of a rebound, but DMI indicators show that there is still bearish pressure.
It looks like Solana has taken back the support level at $132.68. If the price continues to rise, it could go after the 20-day simple moving average at $167.07. But a trend that is slowing could test the support at $132. If that support is broken, the price could fall to $124.85.
