Bulls of Solana $SOL do not lose hope
Although Solana has lost the psychologically important level of $200, traders are still actively betting on price growth. According to Coinglass, the Long/Short ratio for Solana is currently rising. This indicator helps track sentiment among investors — whether they expect price growth or decline.
At the time of writing this analysis, the Long/Short ratio has already exceeded 1. This dynamic indicates that most traders believe in an imminent trend reversal. They are confident that the current drop in SOL will be short-lived.
Furthermore, the MVRV ratio for Solana is now 1.45. This is close to the undervaluation zone. Historically, the price of SOL has peaked at times when the indicator's values were around 2.83.
A low MVRV ratio is a good opportunity to accumulate the asset during price dips. Overall, this is a fairly positive signal, however, the prospects for SOL's recovery will primarily depend on the state of the cryptocurrency market as a whole.
