Solana [SOL] slipped below $100 in the last 24 hours, before dip-buying by investors propelled it back to $102 around the time of writing, as per CoinMarketCap.
The fifth-largest asset was down 10% from last week’s peak of $113 as negative market sentiment persisted, according to AMBCrypto’s scrutiny of Santiment data.
However, such pullbacks present a good opportunity for accumulating assets deemed rewarding in the long run.
What do SOL’s technical indicators signal?
Prominent technical analyst Ali Martinez spotted a buy signal while analyzing SOL’s TD Sequential Indicator, suggesting that a sustained upswing might be on the cards.
While forecasts by experienced folks do hold value when it comes to investing, remember to DYOR before proceeding further.
AMBCrypto scrutinized some other crucial technical indicators to make sense of the aforementioned bullish prediction.
The Relative Strength Index (RSI) dipped below the neutral 50 level at press time. Typically, the 40-50 zone acts as support during bull markets.
A potential bounce from this zone would strengthen the bullish narrative, while a dip below 40 would mean the dominance of bears.
The Moving Average Convergence Divergence (MACD) was below the signal line, indicating a pullback in an uptrend. A bullish crossover could stage the set for an extended rally.
Additionally, SOL’s price was approaching the lower band of the Bollinger Band (BB) indicator. A bounce from the lower band could send SOL back into an uptrend.
Broadly speaking, these indicators supported Ali Martinez’s claims.
Whales reduce long exposure but…
The recent price correction caused a shift in whale investors’ sentiment towards SOL.
As per data scanned from Hyblock Capital, the total number of whale positions that were long on Binance dropped from 69% to 66% in the last four days.
However, similar decreases were observed earlier in the month, raising expectations that attitude may shift once SOL begins its upward trajectory.
Surprisingly, the market was “greedy,” at press time, implying that investors were still trying to grab SOL coins at any given opportunity.
Source : AMBCrypto by Aniket Verma / Feb 26, 2024