Over the past 24 hours, Solana has seen persistent bearish sentiment build, threatening SOL’s $200 potential for May. Over the past day, the asset has fallen by more than 5% according to CoinMarketCap. These losses extend over the last 30 days, where they fell by more than 27%.
Currently, SOL is trading at $135 and has many investors watching its most recent performance worried. However, there are still a few technical indicators that give traders hope for a possible recovery. So let’s see how the hope of an imminent Solana rally could remain.
The fall of Solana continues
Also Read: Solana: Trader Earns $23 Million From BONK and WIF Meme Coins
As we said, Solana hasn’t had the best 30 days. However, this has only increased in recent days. Over the previous 24 hours, the asset fell as much as 6%, further reinforcing concerns about its performance.
The metrics are not favorable, with its market capitalization also falling by over 4% in the past day. Yet the asset has still managed to maintain an overall market value above $60 billion. But could these near-term declines be hiding what a more optimistic overall path for Solana is?
Also Read: Solana (SOL) Price Prediction: May 2024
On the 12-hour price chart of SOL, the asset appears to be moving in a descending channel. This presents a much deeper story than the surface price reactions for Solana. More to the point, it provides a clear path out of recession.
Solana will need to test the pattern and then proceed with the escape. From here, bullish sentiment should start to form. Subsequently, the coming weeks could offer a much different story regarding the trajectory of SOL.
Additionally, they could steer Solana towards the $200 price point next month.
Could SOL reach $200 in May?
Also Read: Solana (SOL) Falls Below $150, But a Rally Could Still Form
When it comes to Solana’s potential rally, whether or not SOL hits $200 in May is based on a lot of speculation and predictions. However, the data paints an interesting picture of the short-term price reaction of the asset.
When SOL price fell in the last 24 hours, its volume also saw a sharp decline. This is important for what it means for his impending performance. More precisely, this speaks of a downtrend that is coming to an end.
Observation of AMBCrypto data indicates that open interest has declined alongside volume, further signaling a price reversal. However, this fact is reflected in the fact that its funding rate is rather high and its relative strength index (RSI) is decreasing. These two elements indicate that a downtrend could continue.
Also Read: Solana: WIF and BONK Meme Coins Rise as SOL Rises by 10%
However, data shows that SOL’s liquidity would increase to near $146 if a bullish rally begins to take place. Therefore, if the asset could surpass this figure, a sustained bullish rally would be in play. From here, $160 would be the next critical price level for SOL to reach.
Success there would indicate that a full breakout to $200 would be possible for Solana. Additionally, these ongoing developments could be imminent if overall market sentiment turns positive again. The month of May will be interesting, as the asset’s performance could increase.
reference: watcher.guru