Will Solana rebound strongly? Santiment predicts a new turnaround
Solana (SOL) has not had a good time recently, with prices falling all the way to a three-month low of around $160. Many traders are disappointed by this, after all, SOL was close to a high of $293 in January. However, there is a market intelligence platform called Santiment, which says that this pessimism may be a precursor to a rebound.
Think about it, everyone is too pessimistic about Solana now, and thinks it will fall further. Santiment's data also shows that since January 20, market sentiment has suddenly fallen sharply to the lowest point. This means that many traders are already very bearish. Moreover, there are a lot of discussions about Solana on social media, indicating that everyone is paying attention to the plight of this token.
But did you know? In the past market, this extreme pessimism was often followed by a price recovery. When everyone thinks it will fall further, the market often goes the other way. It's like after a panic sell-off, smart investors can take the opportunity to buy at a low price and wait for the market to recover.
From a technical analysis point of view, although SOL has been falling, some indicators show that recovery may not be far away. In particular, the 4-hour relative strength index (RSI), although the price is lower, the RSI is forming higher lows, which means that the selling pressure may be easing.
If SOL can successfully break through the key resistance level of $173, then a new upward trend may begin. The next major resistance levels to watch are $195.81 and $216.90, which are consistent with the previous price consolidation area.
So, I think Solana may really usher in a strong rebound. Of course, this is just my personal opinion, and everyone still needs to do enough research before investing.
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