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Solana Rebounds: Is This a Temporary Upswing or the Start of a New Ascending Trend Targeting $200?
As the cryptocurrency market continues to experience immense volatility, Solana’s (SOL) price has taken an unexpected turn by rebounding above $170. Despite the recent pullback, the token’s DEX volume remains heated up, with daily trading volumes ranging from $2 billion to $3 billion while the price sustained a consistent downward trend. This unusual scenario raises an important question: Is this temporary upswing or the start of a new ascending trend targeting $200?
The recent rebound has triggered a strong bearish trajectory reversal, momentarily squashing the bearish signals emanating from the Gaussian channel. However, it is essential to note that despite the bullish reversal in the Relative Strength Index (RSI), the price is expected to remain consolidated within its lower range until the channel turns back to bullish.
In the near term, the current trade setup does not indicate a high likelihood of a breakout beyond $175. Nevertheless, as market sentiments ease and buying volume rises, this could potentially elevate Solana’s price above its bearish range. This scenario would ultimately validate the token’s resilience against recent downward pressure.
While the token’s active address count has plummeted from approximately 18.5 million in November to just 8.4 million, the DEX volume remains strong. This divergence is peculiar and may suggest that institutional investors are still accumulating SOL at discounted prices, leading to a sharp rebound once selling pressure subsides.
Despite the lack of confirmation from the RSI indicators, Solana’s price action could still be seen as a temporary upswing in anticipation of the token’s new ascending trend. The recent pullback has been met with aggressive buying volume, resulting in an immediate and swift recovery above $170.
Source: coinpedia.org
