\n\t\t\t\t\t\t\t\t\tSOL looks \u201cabsolutely bullish\u201d at the moment, one analyst claimed.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The past few weeks have been devastating for the cryptocurrency market, with Solana (SOL) being hit especially hard.<\/p>\n
And while some analysts expect further losses in the near future, certain indicators signal that a much-needed recovery could be knocking on the door.<\/p>\n
Buy Now?<\/h2>\n
Earlier this month, SOL collapsed to around $60, the lowest level since the end of 2023. As of this writing, it trades at roughly $63 (according to CoinGecko), which is a 33% monthly drop, while its market capitalization has fallen well below $40 billion.<\/p>\n
According to Ali Martinez, though, the current bottom might present an excellent opportunity for investors to jump on the bandwagon. He revealed<\/a> that the TD Sequential indicator has flashed a buy signal on SOL, meaning the price could soon head north to $77.<\/p>\n Another technical analysis tool that suggests a resurgence might be on the way is Solana\u2019s Relative Strength Index. Its ratio (on a daily scale) recently dipped to approximately 15, its lowest mark ever. The index ranges from 0 to 100, and readings below 30 indicate that the asset is oversold and on the verge of a potential rebound. On the other hand, anything above 70 is a warning for a possible pullback ahead.<\/p>\n X user Henry supported the optimistic outlook. They noted<\/a> SOL\u2019s recent decline but argued that it looks \u201cabsolutely bullish\u201d at the moment, predicting a W-shaped recovery beyond $88, assuming bulls reclaim $79.9. At the same time, the analyst warned that losing the major support level at $60 could be catastrophic.<\/p>\n Despite the positive signals, the bearish market conditions remain an obstacle, with some industry participants expecting a further price crash for SOL. X user cyclop envisioned<\/a> a short-term plunge to the $30-$40 range, a level last visited in October 2023. Nevertheless, the analyst is optimistic for the long term, forecasting a pump to $300 in the next 1-2 years.<\/p>\n Lately, many investors have transferred their holdings from self-custody to centralized exchanges: a development that intensifies fears of an additional correction by increasing immediate selling pressure.<\/p>\n Another worrying factor is the waning interest from institutional investors. Over the past few days, outflows from spot SOL ETFs have exceeded inflows, indicating that pension funds, hedge funds, and other market players have reduced their exposure to the asset. This, in turn, has required the products\u2019 issuers, including Bitwise, Fidelity, Grayscale, Invesco, and others, to sell real SOL to properly back the shares.<\/p>\n \u00a0<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n<\/a>
More Pain Ahead?<\/h2>\n
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