Solana (SOL), last year’s top performer among the top 20 cryptocurrencies by market cap, has started the year on a downtrend. For the first time in over three months, it recorded successive bearish weekly candlesticks, dropping from its Christmas high. Yesterday, SOL dipped below $100 to bottom out at $85, but it has since recouped some of the losses and trades 6% higher today. However, analysts are divided on its long-term outlook.
In 2023, Solana gained 923% to hit a 52-week high at $124. But the token dipped below $100 for the first time since before Christmas, leading to speculation that Solana’s momentum is starting to reverse. At press time, SOL trades at $100.31, gaining 6.65% in the past 24 hours. It set a three-week low at $85 before regaining its upward momentum. Its trading volume shot up 12% as bulls took control to reverse a trend that has been ongoing for the past two weeks.
SOL started the week at $113.6, and despite a slight momentum shift on January 4, it has been dipping gradually. The token recorded consecutive bearish weekly candlesticks for the first time since early October. Its relative strength index (RSI), which gauges a crypto’s strength based on its closing prices in a given period, stands at 77 in the past week. An RSI reading past 70 indicates that an asset has been massively overbought and is due a correction. Even in the past day, its RSI stands north of 55, which is on the upper side of a neutral reading.
Analysts are divided on what’s next for Solana. Some believe that SOL will continue to dip and trade below the critical $100 point, with predictions of it heading to the $70 range. Max Keiser, a renowned Bitcoin critic, is among those who believe that SOL is going down. On the other hand, some analysts believe that the comeback on the last day is setting Solana up for a major rally. Ali Martinez believes that it’s critical for SOL to close the day above $110. In his analysis of a bull flag pattern that the crypto is forming, he believes the next price target is $163.
Meanwhile, meme coins continue to fuel the Solana ecosystem, with the latest— Dogwifhat (WIF)—gaining 67% in the past day to hit $137 million in market cap. However, readers should do their own research before taking any actions related to cryptocurrencies, as the market is highly volatile and unpredictable.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Ali Martinez, Max Keiser, Pentoshi |
| Companies | Solana |
| Currencies | dogwifhat, Bitcoin, Solana |
| Securities | None |
