How These Solana Social Metrics Can Affect SOL Price
Solana’s social indicators reveal a troubling trend after the altcoin failed to sustain a 40% price increase. November 5, Sol It traded at $161.93, hitting an all-time high 17 days later.
However, while this rally has reignited holders’ enthusiasm, the lack of sustained momentum suggests bullish sentiment is waning. With this decline, the question remains: What’s next for SOL’s price?
Solana sentiment turns bearish
The impact of Solana’s declining bullish sentiment on its market capitalization profile is clear. Two days ago, SOL was the fourth most valuable cryptocurrency in terms of market capitalization. However, it has Since losing that position Ripple (XRP), the coin outperformed other assets in the top 100.
As events unfolded, Solana’s social metrics, including weighted sentiment, declined. Weighted sentiment measures broader market sentiment toward a cryptocurrency.
When it is positive, it means that most comments about the altcoin are bullish. On the other hand, if it is negative, it means that most reviews about the cryptocurrency are bearish. Santiment said Solana’s weighted sentiment has fallen into negative territory, indicating that most market participants are not bullish on SOL’s short-term price action.
If this trend continues over the next few days Require Because cryptocurrencies are likely to continue to weaken. Social dominance is another indicator that SOL price may face further downturn.
Social dominance measures how much a cryptocurrency is discussed compared to other assets in the market. When this indicator rises, it means there is increased discussion about the underlying asset, which is generally bullish.
However, in the case of SOL, the indicator has dropped from 8.42% on November 17 to 3.60% today. Considering the decline in reading volume, Solana’s Price Can Be Challenging A short-term rebound to all-time highs.
SOL Price Forecast: It’s not time for a rebound yet
From a technical perspective, the 50-period exponential moving average (EMA) on the 4-hour chart has crossed above the 20-period EMA. For context, EMA is a technical indicator that identifies bullish and bearish trend.
When the shorter EMA crosses the longer EMA, the trend is bullish. But if it’s the opposite, the trend is bearish. This cross is called a death cross and signals a bearish trend.
Furthermore, the fact that SOL’s price is trading below these two key indicators also supports this bearish outlook. this position Indicating that the recent rally may be a false breakout. If confirmed, Solana’s value could fall further to $213.15.
On the other hand, this trend could change if the Solana social indicator turns bullish. In that scenario, SOL may rebound The likely target is $264.64.
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.
