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- The FOMO around Solana has increased significantly in the past few days.
- Fear and Greed indicator indicates a correction in prices
Solana [SOL] Investors were happy after several days of bearish price action as the symbol’s weekly and daily charts turned green. However, investors should continue to be cautious, as the fear of missing out on the symbol may put an end to this recently begun bull run.
Solana investors are enjoying the profits
Coin Market Cap Data He revealed that the price of Solana rose by more than 9% in the past seven days. In just the last 24 hours, the value of the token has increased by more than 4%, allowing it to touch $145 again.
However, at press time, SOL’s price has seen a slight correction as it traded at $144.8 with a market capitalization of over $67 billion.
Thanks to the recent rise in prices, the market sentiment around the currency has turned bullish, which was evident from the huge rise in its weighted sentiment.
Source: Santiment
However, although the above data seems optimistic, Santiment’s latest report tweet He pointed to a development that could cause problems for Solana.
According to the tweet, as SOL price gained bullish momentum, FOMO around it also increased. Generally, a spike in FOMO amidst a price rally often ends an uptrend.
It was interesting to know that Avalanche [AVAX] It also saw an upward surge alongside SOL. The good news for AVAX is that the FOMO around it didn’t rise much.
Will SOL’s bull run continue?
Given the chances of SOL’s bullish rally coming to an end, AMBCrypto has examined its on-chain data to better understand what to expect.
Our analysis of Coinglass data revealed that SOL’s buy/sell ratio has increased. A rise in the gauge is usually considered a positive signal, as it indicates that bullish sentiment around the asset is high.
Source: Queenglass
However, Solana Fear and Greed Index The reading was 63% at the time of publication, which means the market was in a “greedy” phase. Whenever the scale touches this level, it indicates that the chances of a price correction are high.
The Bollinger Bands indicator revealed that SOL price has entered a less volatile zone. In addition, the Relative Strength Index (RSI), after a sharp rise, registered a decline, indicating that Solana’s may soon see a price decline.
On the other hand, Chaikin Money Flow (CMF) continued to move north. The MACD indicator showed a clear bullish crossover, indicating continued price increases.
Source: Trading View
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Our analysis of Hyblock Capital data revealed that if the bullish rally continues, it would not be surprising to see SOL exceed $150 in the coming days.
However, a correction may lead to a drop to $141.
Source: Hyblock Capital
