Solana is up nearly 33% over the past month, following the market’s broader resurgence since August 19.
It currently trades just south of the $100 psychological mark, and multiple market observers expect a new rally soon. Others are more cautious, seeing a risk of a double-digit correction.
The Upward Scenario
X user Ash Crypto recently claimed that SOL is displaying “one of the most bullish setups in crypto right now,” pointing to three major signals that have all flipped in favor of the bulls. According to the analyst, those include the first green monthly candle in 10 months, the monthly MACD, which is on the verge of a bullish cross, and the monthly RSI, which has finally broken a two-year downtrend.
The Black Bull and Gerla also chipped in. The former described SOL as “a $500 token trading at $100,” while the latter believes the asset has completed its manipulation phase and could now be gearing up for a surge towards $500 and then $1,000.
Whale activity and strong institutional interest reinforce the positive scenario. A few days ago, analytics platform Lookonchain revealed that the large investors known as HURDw purchased almost $30 million worth of SOL over the last three weeks. For his part, X user Ted disclosed that a whale scooped up $9 million in Solana, opining that smart money has shifted its focus to altcoins.
Spot SOL ETFs have posted mainly green candles lately, signaling growing appetite for the asset from hedge funds, pension funds, and other conservative investors. This requires the issuers of these products (Bitwise, Fidelity, Grayscale, VanEck, Franklin Templeton, and other financial giants) to buy Solana tokens, thus potentially setting the stage for a further price increase.
Moreover, SOL’s Relative Strength Index (RSI) has plunged below 30, indicating that the asset has entered oversold territory and could be gearing up for a surge. The ratio runs from 0 to 100, where climbing above 70 is interpreted as bearish.
Major Plunge Ahead?
X users BATMAN and Crypto with Haris ₿ are among the pessimists. The former thinks SOL appears to be weakening, adding that the Stochastic oscillator is also forming a bearish divergence.
Crypto with Haris ₿ revealed that his trades are currently at an unrealized loss of over $180,000 but refused to close the positions, anticipating a crash for BTC to $62,000 and a plunge for SOL to $80.
Source: CryptoPotato
