- The FOMO around Solana has increased significantly in the last few days.
- Fear and greed index indicated a price correction
Solana (SOL) Investors rejoiced after several days of bearish price action as the token’s weekly and daily charts turned positive. However, investors must continue to be cautious as FOMO surrounding the token could put an end to this recently initiated bull rally.
Solana investors rejoice over profits
CoinMarketCaps Data revealed that Solana’s price has increased by more than 9% in the last seven days. In the last 24 hours alone, the token’s value increased by over 4%, allowing it to reach $145 again.
However, at press time, SOL’s price experienced a slight correction and was at $144.8 with a market capitalization of over $67 billion.
Thanks to the recent price surge, the market sentiment around the coin has turned optimistic, which was evident by the massive increase in weighted sentiment.
Source: Santiment
Although the above data seemed optimistic, tweet pointed out a development that could get Solana into trouble.
According to the tweet, while SOL price was gaining bullish momentum, the FOMO around it was also increasing. Generally, a spike in FOMO during a price increase often ends the bull run.
It was interesting to note that Avalanche (AVAX) also showed an upward movement along with SOL. The good news for AVAX was that FOMO around it did not increase much.
Will SOL’s bull rally continue?
With the possibility of SOL’s bull rally coming to an end, AMBCrypto reviewed its on-chain data to better understand what to expect.
Our analysis of Coinglass data revealed that SOL’s long/short ratio has increased. An increase in the metric is usually considered a positive signal as it indicates that bullish sentiment towards an asset is high.
Source: Coinglass
Solanas Fear and Greed Index was at 63% at press time, meaning the market was in a “greed” phase. Whenever the value reaches this level, it indicates that the probability of a price correction is high.
The Bollinger Bands showed that the SOL price entered a less volatile zone. Moreover, the Relative Strength Index (RSI) recorded a decline after a sharp increase, suggesting that Solana could soon see a price decline.
The Chaikin Money Flow (CMF), on the other hand, continued to move north. The MACD showed a clear bullish crossover, indicating further price growth.
Source: TradingView
Is your portfolio green? Check out the SOL Profit Calculator
Our analysis of data from Hyblock Capital has shown that if the bull rally continues, it would not be surprising to see SOL rise above the $150 mark in the coming days.
However, a correction could lead to a drop to $141.
Source: Hyblock Capital
