Is Solana poised for a reversal?
Solana’s (SOL) price has faced notable volatility in recent weeks, struggling to overcome resistance at $160. After multiple failed attempts to breach this level, SOL experienced a significant 20% drawdown towards the end of August.
This decline has left many investors cautious, but recent shifts in behavior suggest a potential rebound. Key indicators now point to a possible resurgence in Solana’s price, raising optimism among traders and analysts.
A key factor in assessing Solana’s potential recovery is the recent negative turn in the funding rate. This metric, which tracks the cost of holding positions in the futuresmarket, often signals shifts in market sentiment.
Brian Quinlivan, Lead Analyst at Santiment, noted in an exclusive comment for BeInCrypto that the funding rate is turning negative. This indicates that the bearish sentiment may be reaching an extreme, which sets the stage for a rebound.
Furthermore, the Chaikin Money Flow (CMF) indicator, which measures the cumulative flow of money into and out of an asset, has established a notable pattern for SOL.
Currently, Solana’s price is trading at $132 after bouncing back from the support level of $126. For SOL to resume its upward trajectory, it must break through the local resistance at $137.
Achieving this would pave the way for a push towards the $160 mark. Historical data shows that Solana has experienced similar consolidation phases between $126 and $160, suggesting a rise to this level could be next.
The factors supporting this forecast are substantial, given that in the past, SOL around $126 has led to subsequent price increases. If SOL maintains its gradual upward momentum, the range-tested level of $137 could act as a springboard for further gains, making a rise to $160 possible.
This decline has left many investors cautious, but recent shifts in behavior suggest a potential rebound. Key indicators now point to a possible resurgence in Solana’s price, raising optimism among traders and analysts.
A key factor in assessing Solana’s potential recovery is the recent negative turn in the funding rate. This metric, which tracks the cost of holding positions in the futuresmarket, often signals shifts in market sentiment.
Brian Quinlivan, Lead Analyst at Santiment, noted in an exclusive comment for BeInCrypto that the funding rate is turning negative. This indicates that the bearish sentiment may be reaching an extreme, which sets the stage for a rebound.
Furthermore, the Chaikin Money Flow (CMF) indicator, which measures the cumulative flow of money into and out of an asset, has established a notable pattern for SOL.
Currently, Solana’s price is trading at $132 after bouncing back from the support level of $126. For SOL to resume its upward trajectory, it must break through the local resistance at $137.
Achieving this would pave the way for a push towards the $160 mark. Historical data shows that Solana has experienced similar consolidation phases between $126 and $160, suggesting a rise to this level could be next.
The factors supporting this forecast are substantial, given that in the past, SOL around $126 has led to subsequent price increases. If SOL maintains its gradual upward momentum, the range-tested level of $137 could act as a springboard for further gains, making a rise to $160 possible.
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