Solana (SOL) Price Jumps 13% in 7 Days, But On-Chain Indicators Suggest the Rally Could Be Short-Lived
- 王林Original
- 2024-08-25 06:14:18768browse
Like many altcoins in the market, Solana's (SOL) price jumped in the last 24 hours. This is a positive development for the token, which has increased
Solana (SOL) price increased over the last 24 hours, which is a positive sign for the token. However, certain on-chain indicators suggest that the rally may not last.
At press time, SOL trades at $158, having reached its highest price since August 11. Despite this surge, Solana's social dominance has dropped significantly.
Social dominance measures the amount of attention a cryptocurrency receives in comparison to others. A high percentage indicates increased discussions about Solana, which can be crucial to sustaining its upward momentum.
However, SOL's social dominance declined from 4.50% on August 19 to 2.58%. This drop hints at the market's fading enthusiasm for the token, which could spell trouble for its rally.
As seen above, whenever social dominance drops during an uptrend, the rally typically halts. If history repeats itself, SOL could be headed for a decline.
In addition to social dominance, Solana's Weighted Sentiment has also turned negative. According to Santiment, this metric tracks the overall sentiment toward a cryptocurrency across social media platforms.
When sentiment is positive, social media comments lean bullish. On the flip side, negative sentiment reflects a pessimistic outlook, which is now the case with SOL.
This shift in sentiment suggests that despite the recent price gains, market participants may be losing confidence in sustained growth.
SOL Price Prediction: Mixed Signals on Different Charts
According to the daily chart, SOL’s price could face resistance at the upper points of interest around $163.93.
Should the token’s uptrend be rejected at this point, it could face a drawdown, possibly falling to $150.84. In this region, bulls appear to have formed a strong support system that could prevent another downturn.
Meanwhile, on the 4-hour chart, SOL price formed a bullish Adam and Eve pattern. This pattern is in the form of a V-shaped bottom (Adam) followed by a U-shaped consolidation period, signaling the start of a new uptrend.
As shown below, SOL’s price has broken above the neckline of the technical pattern. If this uptrend continues, the bearish bias analyzed on the daily chart could be invalidated.
Specifically, a continued upswing could see the token increase by 10% to $172.83. In a highly bullish scenario, the Solana native token might hit $187.33.
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