Solana (SOL) rebound chance after big drop? Undervalued or about to crash?

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In the past 24 hours, the price of Solana (SOL) plummeted by 8.03%, falling below $200 for the first time, marking the first significant decline since November. This drop is in line with the overall market downturn and large-scale liquidations. Despite this, Solana traders still expect that the currency may rebound soon.

Despite the price drop below $200, Solana's long/short ratio has risen instead, indicating that the market is full of hope for a rebound. According to Coinglass, the current long/short ratio is close to 1, and traders generally believe that this decline will be a short-term fluctuation rather than a long-term bear market.

In addition, Solana's MVRV ratio also points to undervalued areas, currently at 1.45, indicating that the market may enter an accumulation phase and there is a possibility of a rebound in the future. Historical data shows that when the MVRV ratio approaches 2.83, SOL usually hits the market top.

Technical warning, rapid rebound in doubt

Despite bullish sentiment, Solana's technicals do not support a rapid rebound. The previous bull market expectations were broken by breaking the support line of $209.58. If the current trend continues, SOL may fall to $153.97, causing losses to bulls. However, if bulls can hold the support of $170.75, SOL may rebound from below $200 and may rise to as high as $264.66.

In summary, although Solana is currently facing a technical correction, market sentiment remains optimistic and there is a rebound opportunity in the short term. The key will depend on the performance of the market.

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