🟢Solana (SOL) has seen a sharp pullback from a January peak of $293 to a recent three-month low of around $160. However, the cryptocurrency could be turning the tide as leading cryptocurrency exchange Binance has once again started buying altcoins in huge quantities.
Crypto analyst MartyParty noted the significant development in Binance's SOL holdings in a post on X (formerly Twitter). The exchange strategically sold its SOL holdings near the January peak and has now begun accumulating them again at lower price levels.
This move suggests that institutional players and large market participants are buying the dip, which could provide strong support for a potential price recovery.
🟢At the time of writing, SOL was trading at $172.86, which is up 5% in the last 24 hours. The price remains near a key support level of $160, which is currently preventing further declines.
The cryptocurrency lost the 20-day exponential moving average (EMA) at $193.48 after forming five consecutive bearish daily candles. The 20-day EMA now represents a key resistance level for bulls.
🟢Solana ETF on the horizon
Meanwhile, the chances of approval for the Solana spot ETF in the United States may push the SOL token higher as the market cycle develops.
Companies like Grayscale, 21Shares, Bitwise, and VanEck have filed for an investment product focused on Solana.
🟢Price analysis of SOL
The Relative Strength Index (RSI) for Solana shows a value of 33.70, which is slightly above the oversold threshold of 30. This suggests that the selling spike may slow down, and a rebound could be on the horizon if buying volume increases. Simply put, the RSI helps traders see if an asset is oversold, and a value close to 30 often hints at potential price growth.
On the other hand, the MACD indicator shows that the MACD line (blue) is below the signal line (orange) and the MACD histogram is also red. Bears still control the situation, but a slight decrease in selling momentum suggests that the downtrend may be weakening. Essentially, the MACD helps measure momentum, and right now it indicates that sellers are still in power, but they may be losing their grip.
