- Solana (SOL) defied the broader crypto market downturn by posting an impressive 8% gain in 24 hours, demonstrating resilience where many others faltered.
- Despite this short-term recovery, technical indicators suggest that Solana remains in a longer-term bearish trend.
Solana’s Remarkable Recovery
In an unexpected twist, Solana (SOL) has managed to stand out amidst a broader crypto market downturn, posting an impressive 8% gain over the past 24 hours. This performance distinguishes Solana as one of the top crypto assets, exhibiting resilience where many others have faltered.
Despite the prevailing bearish trend in the altcoin market, Solana has shown a notable bounce back. While the overall crypto market, including major assets like Bitcoin (BTC) and Ethereum (ETH), experienced significant declines, Solana demonstrated a surprising rebound. Ethereum, for instance, only managed a modest increase of just over 1%, while other top cryptocurrencies fluctuated between minor gains and losses.
A Strong 24-Hour Performance
According to data from CoinMarketCap, Solana’s robust 24-hour outing is worth noting. The week began with a dip for SOL, with its price dropping by approximately 3.8% on June 23rd, closing at around $128.63. However, as the market experienced further downturns on June 24th, Solana defied the trend, closing the day at about $132, marking an increase of over 2.8%.
At the time of writing, Solana was trading at roughly $138, reflecting an additional gain of over 4%. This upward movement underscores Solana’s capacity to recover swiftly even amidst broader market challenges. Yet, technical indicators suggest that the altcoin remains in a bearish trend despite these positive strides.
Solana is currently trading below its short moving average (yellow line), a level that often acts as a dynamic resistance. Moreover, the Relative Strength Index (RSI) remains below the neutral 50 mark, indicating that the overall momentum is still skewed towards the bearish side. These indicators imply that although Solana has exhibited bullish signals in the short term, it has not yet solidified a strong enough rebound to alter its longer-term trend.
SOL Positive Sentiment Wanes
AMBCrypto’s analysis of Solana’s Weighted Funding Rate on Coinglass provides further insights into current market sentiment and trader positions. As of this writing, the Funding Rate was positive but on a decline, currently standing at around 0.0003%. This figure indicates that while buyers still have a presence, their influence is diminishing.
This change in sentiment suggests that traders are becoming more cautious, with a reduced willingness to pay premiums to hold long positions. This shift could potentially open the door for sellers to gain more influence in the market.
Solana’s recent performance highlights its resilience in a volatile market, but the longer-term outlook remains uncertain. Traders and investors will need to watch closely to see if Solana can sustain its gains and overcome the bearish trends that currently dominate.
