- The FOMO surrounding Solana has increased significantly in recent days.
- The fear and greed index indicated a price correction
Solana [SOL] investors rejoiced after several days of bearish price movements as the token’s weekly and daily charts turned green. However, investors should remain cautious as FOMO surrounding the token could put an end to this recently initiated bull rally.
Solana investors enjoy profits
CoinMarketCaps facts revealed that Solana’s price has increased by more than 9% in the past seven days. In the last 24 hours alone, the value of the token has risen by over 4%, reaching $145 again.
However, at the time of writing, SOL’s price witnessed a slight correction as it stood at $144.8 with a market cap of over $67 billion.
Thanks to the recent price increase, market sentiment around the coin turned bullish, which was evident from the huge spike in weighted sentiment.
Source: Santiment
While the above data looked optimistic, Santiment’s is recent tweet pointed out a development that could land Solana in trouble.
According to the tweet, FOMO surrounding it increased while SOL’s price gained bullish momentum. In general, a rise in FOMO amid a price increase often ends the bull run.
It was interesting to know that Avalanche [AVAX] also showed a bullish rally along with SOL. The good news for AVAX was that the FOMO around it didn’t increase much.
Will SOL’s Bull Rally Last?
Since there were chances that SOL’s bull rally might end, AMBCrypto checked its on-chain data to better understand what to expect.
Our analysis of Coinglass data showed that SOL’s long/short ratio increased. A rise in the statistic is typically considered a positive signal as it indicates that bullish sentiment around an asset is high.
Source: Coinglass
However, Solana’s fear and greed index was at 63% at the time of writing, meaning the market was in a “greed” phase. When the measure reaches this level, it indicates that the likelihood of a price correction is high.
The Bollinger Bands revealed that the price of SOL entered a less volatile zone. Moreover, after a sharp rise, the Relative Strength Index (RSI) registered a decline, indicating that Solana’s could soon see a price drop.
In contrast, the Chaikin Money Flow (CMF) continued to move northward. The MACD showed a clear bullish crossover, indicating continued price appreciation.
Source: TradingView
Is your portfolio green? look at the SOL profit calculator
Our analysis of Hyblock Capital’s data showed that if the bull rally continues, it won’t be surprising to see the SOL break above $150 in the coming days.
However, a correction could result in a drop to $141.
Source: Hyblock Capital