Solana rises 25% from a recent low of $110, facing mixed signals as bulls aim to sustain recovery.
During the latest market downturn that saw Bitcoin (BTC) drop below $50,000, Solana (SOL) fell 40% in eight days. Recent market activity indicates a potential recovery for Solana.
After hitting a low, Solana retested the $140 mark, peaking at $144 this morning. However, mild corrections have been observed. Solana is up 7% in the past 24 hours and trading at $140 at the time of writing.
Market analyst Kaleo highlighted Solana’s performance against Bitcoin, noting the SOL/BTC ratio’s promising increase. He cited a potential target ratio of 0.01.
Kaleo suggests the SOL/BTC ratio could reach new highs, with 0.01 being a strong target. The daily Accumulation/Distribution metric for SOL shows a rising trend, with the current figure at 297.43 million SOL.
Bearish momentum remains prevalent
The Directional Movement Index (DMI) presents a mixed view. The positive directional indicator (+DI) fell to 15.08, indicating reduced buying pressure, while the negative directional indicator (-DI) increased to 35.83, showing that selling pressure remains strong. The Average Directional Index (ADX) is at 28, suggesting the bearish trend is still robust.
Trader JohnnyB believes that another downturn might occur before a full recovery. He views this as a “generational buy opportunity” for long-term investors.
Looking ahead, Solana’s short-term future remains cautiously optimistic. The Accumulation/Distribution metric shows investor confidence, while the DMI indicators warn that bullish momentum has not yet fully overcome selling pressure.
Solana has flipped the $132.68 level from resistance to support. A strong bullish push might see Solana rebound to the 20-day SMA at $167.07. However, if bullish momentum weakens, the $132 support level could be tested again, possibly bringing the $124.85 defense into play.
