💥💥💥 #SolanaPrice Prediction: Experts Anticipate Reversal Rally for $SOL
Solana (SOL) Faces Volatility But Signals Potential Rally
- Solana's (SOL) price has been highly volatile in recent weeks, struggling to break through the $160 resistance level. After several failed attempts, SOL saw a sharp 20% decline toward the end of August, leaving investors cautious.
- However, recent shifts in key indicators hint at a potential rebound. Traders and analysts are increasingly optimistic that Solana may be poised for a recovery.
Signs Pointing to a Potential Solana Rally
- A critical factor suggesting Solana's recovery is the recent negative shift in its funding rate, which measures the cost of holding positions in the futures market and reflects market sentiment.
- Santiment's Brian Quinlivan noted that Solana’s negative funding rate signals extreme bearish sentiment, potentially setting the stage for a price rebound. With traders increasing short positions, liquidations could trigger the next rally.
- The Chaikin Money Flow (CMF) shows that when Solana's CMF dips to -10.0, its price often rebounds within a week. This pattern suggests SOL's recent decline may be temporary, with potential inflows driving a recovery soon.
- Additionally, broader macroeconomic trends, including growing institutional interest in the crypto market, could further boost Solana’s price momentum, reinforcing the case for a potential rally.
Solana Price Target: $160 on the Horizon?
- Currently, Solana is trading at $132, having bounced from its $126 support level. To regain its upward momentum, SOL must break through the local resistance at $137. If successful, this could pave the way for a push toward $160.
- Solana's past consolidation between $126 and $160 suggests that if SOL breaks the $137 resistance, a rally to $160 is likely. However, failure to surpass $137 could lead to sideways movement, weakening the bullish outlook.
Source - beincrypto.com
