Solana (SOL) has dropped 14% from its all-time high of $295.83, reached on January 19. Despite the dip, bullish sentiment remains strong as profit-taking slows down. This change hints at a potential rebound, with SOL possibly retesting and surpassing its previous high.
Solana Bulls Push for a Comeback
Today, Solana saw a resurgence in net inflows into its spot markets, signaling renewed investor confidence. This comes just a day after the altcoin faced $137 million in net outflows, marking the highest outflows in the past month.
Thanks to these inflows, SOL’s price has risen by 9% in the last 24 hours. When an asset experiences net inflows, it means buying activity is outpacing selling, indicating growing demand and a shift towards accumulation.
Additionally, SOL’s Open Interest has jumped by 11% within the same period, reaching $7.25 billion. A rise in Open Interest during a price rally suggests increased participation and confidence among traders, reinforcing bullish momentum.
SOL Price Prediction: Will It Hit a New High or Drop?
On the daily chart, SOL’s Relative Strength Index (RSI) highlights the growing demand for the asset. Currently, the RSI stands at 67.49, indicating strong buying momentum.
The RSI, ranging from 0 to 100, helps determine whether an asset is overbought or oversold. A reading above 70 signals overbought conditions, which could lead to a correction, while values below 30 suggest oversold conditions, pointing to a potential rebound.
At its current level, SOL remains in bullish territory without being overbought. If buying pressure continues, the price may revisit its all-time high.
However, a rise in selloffs could challenge this bullish outlook, potentially driving the price down to $239.39.
Conclusion
Solana’s recent price movement and market indicators suggest a possible push back to its all-time high. Increased investor interest and bullish momentum could support this trend. However, traders should watch for potential selloffs that might impact the current rally.
