Market volatility continues, and Bitcoin‘s slowing rise could affect some more than others. An altcoin among the top 10 cryptocurrencies may soon be running in the opposite direction. The layer1 solution, which fell to single-digit price levels after the FTX crash, might be on borrowed time.
Solana (SOL)
The past three weeks have been rather pleasant for investors of Solana (SOL) Coin considering the achieved gain performance. However, recent observations suggest that SOL Coin’s sunny days may soon be ending.
If you held SOL in the second half of June, you’re probably pleased with your decision. The reason being that the cryptocurrency was on an upward trajectory since its lowest price point on June 10. It bottomed out at $12.82 and recently soared to $22.46, meaning it has increased by over 70% so far.
The bulls have been active for about 3 weeks now, and the probability of selling pressure is more distinct. We may see SOL drop in the coming few days.
Should You Buy SOL Coin?
RSI and MFI are in the overbought zone, suggesting that the price could run in the opposite direction soon unless a larger demand wave arrives.
Investors of SOL should not forget that for the first time, the cryptocurrency significantly exceeded the same resistance line. This indicates that Solana might finally be on the verge of overcoming the overall downtrend, possibly in favor of a relief rally. If so, the bears may fail to take over. The volume on the network and social sentiment also indicate that it could be the bulls’ last chance.
While a breakout could trigger further gains, the likelihood of whales using this as a profit-taking opportunity is also significant. This is due to individual investor demand providing exit liquidity that enables short-term profit-taking. Such an outcome could create a great opportunity for short sellers. Both Binance and DYDX recorded an increase in negative funding rates, indicating that traders have started opening short positions.
Disclaimer: The information in this article does not constitute investment advice. Investors should be aware of the high volatility and thus the risk of cryptocurrencies, and should conduct their transactions based on their research.
