Solana's price has reached a multi-year high. Let's figure out whether SOL will continue to grow and bring profit to investors, or is this the end of the bull run!
Solana is now very profitable
The price of the Solana project token has increased by 70% since the end of February. The Sharpe ratio for this asset is currently 5.37, which is the highest since December 2023. This metric measures the risk-adjusted return of a cryptocurrency investment or portfolio. It compares a cryptocurrency's excess return (above the risk-free rate) with its volatility.
A higher Sharpe ratio implies higher risk-adjusted returns. This suggests that the investment provides a greater return for the amount of risk taken. However, along with this indicator, it is also necessary to take into account market volatility.
However, the momentum developing in the market is consistent with the rewards. Investors are optimistic about further growth, as can be seen in the chart. The weighted sentiment indicator rises when social volume is high and the vast majority of messages in the media space are simultaneously very positive.
Thus, these indicators indicate a likely price increase.
SOL forecast: rate at $200
The price of Solana is close to breaking through the $200 mark and is on the verge of breaking through the Fibonacci level of the 50% retracement of the move from $248 to $89. This is a critical barrier for a bullish reversal. Once this line turns into support, SOL will have the bullish momentum it needs to rally further. However, if the breakout fails, Solana may move lower and reverse the trend.
The Relative Strength Index (RSI) is currently in overbought territory, so investors should be wary of a potential correction. If the token fails to turn the $168 level into support, the price will likely fall to $150, rendering the bullish scenario invalid.
