- Solana’s recent uptick in price has caused quite a stir in the market.
- Market sentiment indicators suggest varying interpretations.
- An increase in FOMO might spell an end to Solana’s rally.
Solana sees a bullish streak but high FOMO raises caution on its sustainability.
Solana investors enjoy profits
In the past week, Solana’s price surged dramatically, rising by over 9% according to CoinMarketCap. Within the last 24 hours, the price saw an impressive 4% rise, nudging close to the $145 mark.
Currently, Solana is experiencing a minor price correction, trading at approximately $144.8, with its market capitalization resting just above $67 billion.
Market Sentiment and Potential Warnings
The recent price increase has positively influenced market sentiment around Solana, with a notable spike in its weighted sentiment index. However, there are underlying concerns. According to a recent Santiment tweet, the rising FOMO amid Solana’s price increase could potentially end this bullish trend.
Interestingly, Avalanche (AVAX) is also observing a bullish trend, albeit without a corresponding rise in FOMO, which might be more sustainable in comparison to Solana.
Will SOL’s bull rally last?
To assess whether Solana’s bullish trend will continue, a deep dive into its on-chain data was necessary. Analysis from Coinglass highlighted an increase in Solana’s long/short ratio, which generally indicates heightened bullish sentiment.
However, Solana’s fear and greed index reads at 63%, suggesting that the market is experiencing a phase of “greed.” Such levels often precipitate a price correction. Furthermore, the Bollinger Bands show Solana’s price moving into a less volatile region.
The Relative Strength Index (RSI) exhibited a decline after a recent surge, flagging a potential price drop. Conversely, the Chaikin Money Flow (CMF) continues to trend upwards, and the MACD showcases a clear bullish crossover, indicating further potential for price increase.
Outlook from Market Indicators
An analysis of Hyblock Capital’s data suggests that should the bullish momentum persist, Solana might break the $150 mark soon. However, if a correction takes place, it could cause the price to drop to around $141.
Conclusion
In summary, while Solana’s recent price movements have brought investor joy and a heightened market sentiment, caution remains essential. The rising FOMO may threaten the sustainability of this rally, indicating that a careful watch on market indicators and sentiment indices is crucial. Whether Solana can continue its upward trajectory or face a correction remains a closely-watched development in the crypto market.
