Solana Under $200, but Traders Bet on a Swift Recovery
Solana’s (Sol) price has fallen sharply by 8.03% in the past 24 hours, falling below the $200 level for the first time since early November. The downturn is consistent with a broader market downturn, triggering widespread liquidation.
Despite the sharp decline, it appears Solana Traders expect altcoins to rebound quickly from their lows. May I?
Solana remains underrated, Bulls hopeful
Solana’s price moves in line Analysis from BeInCrypto on December 15 suggests that altcoins may struggle to stay above $200. In this article, we enumerate how bears can overtake bullish dominance when the price falls below the 20-day exponential moving average (EMA).
With Solana price below $200, traders are expected to exercise caution when betting on a rise in price. But that’s not the case. According to Coinglass, the Solana long/short ratio is increasing. The long/short ratio shows whether traders expect prices to rise or fall.
When this ratio falls, it means the average expectations are bearish. But as it stands now, the ratio is increasing and is on the verge of exceeding 1. This rise shows that Solana traders are confident recent decline It only lasts for a short time.
This sentiment may also be related to the status of certain indicators on the chain. One such metric is the market value to realized value (MVRV) ratio. The MVRV ratio measures the profitability of the market and shows whether a cryptocurrency is undervalued or overvalued relative to its fair value.
Typically, a high MVRV ratio indicates significant unrealized profits in the market. In this case, holders will be willing to sell when the cryptocurrency is near a local or market top. However, a falling ratio indicates falling earnings and can be taken as Opportunity Zone for accumulation.
According to data from Glassnode, Solana’s MVRV ratio is currently 1.45, which is close to undervalued territory. Historically, SOL price Market tops tend to be reached when the MVRV ratio reaches around 2.83.
The decline in the MVRV ratio indicates that SOL may be approaching a potential accumulation phase. despite this, potential recovery Depends on the condition of the market.
SOL Price Forecast: Indicators Pick Against a Quick Bounce
Solana had previously formed a bull flag pattern, suggesting that the price could rise to $300. However, today’s assessment of the daily chart suggests that outlook is no longer valid as SOL price fell below the support line $209.58.
In addition to this, altcoin trading volumes continue to decline, mostly in favor of sellers. If this trend continues, Solana’s price could drop to $153.97, exposing long traders to losses and reducing the likelihood of a quick rebound.
Conversely, if the bulls prevent the coin from falling below $170.75, further corrections may be avoided. Solana could bounce back From below $200, a rise to $264.66 is possible.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
