Solana (SOL): poised for recovery or stagnation? | analysis by AMBCrypto
SOL has been caught between $158 and $173 for the past two weeks. Recently, the 50-period moving average crossed below the 200-period moving average, a classic bearish signal in technical analysis known as a “death cross.”
This means that in the short-term, unfortunately, the bears are prevailing.
The price action shoeds a sharp drop followed by intense consolidation. The RSI is currently around 64, closer to the neutral zone’s upper boundary but not yet in the overbought area (typically above 70).
So, there is still some buying momentum, though it is not strong.
The derivatives market doesn’t offer any solace either. Trading volume has significantly decreased by 60.44% to $2.90 billion, a massive drop in trading activity.
The overall long/short ratio of 0.9324 on a 24-hour basis shows an almost equal preference for long and short positions, reflecting the market’s uncertainty about Solana’s next move.
The concentration of liquidations, particularly short liquidations during price spikes, implies a market that is somewhat prone to sudden bullish runs, which can aggressively squeeze short sellers out of their positions.
Overall, there might be room for a small rally if external factors or market sentiment can provide enough bullish momentum.
