The Solana price has declined by 4.5% in the past 24 hours, retracing its steps back to $104.89 after a strong weekend for the altcoin and wider crypto market.
SOL has now risen by 8% in a week and by 12.5% in the last 30 days, with the coin also sitting on a very impressive 400% gain in the past year.
Given just how strongly SOL has rallied in recent months, it’s arguable on the basis of indicators that the coin is likely to correct further.
Yet analysts expect the crypto market to become increasingly bullish in the face of rising Bitcoin ETF inflows, implying that SOL could see further strong gains after a brief correction.
Looking at SOL’s chart, it’s possible that the coin may fall further in the near term, at least judging by its indicators.
Most obviously, its relative strength index (purple) has fallen from around 65 to 55 in the past day or so, signalling a clear loss of momentum.
Having said that, its 30-day moving average (yellow) is in more of a mixed position, with the average still rising modestly beyond the 200-day average (blue).
But with SOL’s current price dropping towards the 30-day, the two latter could end up falling in the next one or two weeks.
It’s probable that it won’t fall far, however, since SOL’s support level (green) has resisted big drops since December, implying that the current correction shouldn’t be too severe.
The reason for SOL’s gains over the weekend – which today’s drop hasn’t dented too much – is that Bitcoin ETF volumes have buoyed the market and trader optimism considerably, having a beneficial effect on most altcoins as well.Read more on cryptonews.com