Solana (SOL) social indicators reveal a worrying trend after the altcoin failed to sustain its uptrend.
While the latest rally has sparked renewed enthusiasm among holders, the lack of continuity in momentum points to a weakening of bullish sentiment. With this decline, the question remains: what’s next for the cryptocurrency.
Sentiment about Solana turns bearish
The impact of Solana’s weakening bullish sentiment is evident in its market position. Two days ago, SOL was the fourth most valuable cryptocurrency by market cap. However, it has since lost that position to XRP.
Following this development, social indicators, including weighted sentiment, decreased. Weighted Sentiment assesses the general market’s perception of a cryptocurrency. When it is positive, it implies that the majority of comments about the altcoin are bullish. On the other hand, if it is negative, it means that the majority of comments about the cryptocurrency are bearish.
According to Santiment, Solana’s weighted sentiment has plummeted into negative territory, suggesting that most participants are not optimistic about the short-term price action.
Solana's Weighted Sentiment. Source: Santiment
If this trend continues in the coming days, the demand for the cryptocurrency may continue to decline. In this sense, social dominance is another indicator that suggests that the price of SOL may face a further decline.
Social dominance measures the level of discussion around a cryptocurrency compared to other assets in the market. When the indicator rises, it means that conversations about the asset in question have increased, which is generally bullish.
However, in the case of Solana, the indicator fell from 8.42% on November 17 to 3.60% today (3). Considering the drop in this reading, the altcoin may find it difficult to return to its all-time high in the short term.
Solana's Social Dominance. Source: Santiment
Price Prediction: It’s Not Time for Recovery Yet
From a technical standpoint, the 50-period Exponential Moving Average (EMA) on the 4-hour chart has crossed above the 20-period EMA. When the shorter EMA crosses above the longer one, the trend is bullish. But if it is the opposite, the trend is bearish. This crossover, called a death cross, indicates a downtrend.
SOL trading below both key indicators supports this bearish outlook. This positioning suggests that the recent bounce could be a false signal. If confirmed, Solana’s value could potentially fall further to $213.15.
Solana 4-Hour Analysis. Source: TradingView
On the other hand, if social indicators turn bullish, this trend may change. In such a scenario, SOL may bounce with a likely target of $264.64.
The article Interest in Solana (SOL) is declining, metrics show appeared first on BeInCrypto.
