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Should I load up on #Solana after its 10% overnight gain?
Solana's price rose 10% to $137.28 today as the cryptocurrency market rose 2% in 24 hours.
This follows a rough start to the week for the market, with SOL down 5% in the last week and 23% in a month.
The coin has appreciated 525% in the past year, and with strong medium- and long-term momentum, today's rebound could continue in the next days.
Should I load up on Solana after its 10% overnight gain?
Solana's technicals make it impossible to predict if it will fall again or increase further.
On one side, SOL's relative strength index (purple) has reached 70, an overbought level, and appears to be dropping.
However, the coin's 30-day average (orange) hasn't risen over its 200-day (blue), so it has time to rise before being overbought.
SOL's chart today is good because its trading volume has increased to $5 billion from $2 billion two days earlier.
Despite being the second-most popular alt among digital funds (behind Ethereum), Solana is still in high demand at the discount offered by the recent collapse.
In the past 24 hours, one unknown wallet sent approximately $200 million in SOL to another unknown wallet.
After this week's massive drop, the market appears to have bottomed out, but it could still have a few more wobbles before returning to consistent growth.
After keeping rates unchanged yesterday, market pessimism is due to the Federal Reserve's lack of rate cuts.
We expect rates to be cut later this year, which will make the market happier.
This might boost Solana prices to $150 in a few weeks and $200 by summer.
