FOMO round Solana has elevated considerably in the previous couple of days.
Concern and greed index hinted at a worth correction
Solana [SOL] buyers have been rejoicing after a number of days of bearish worth motion because the token’s weekly and day by day charts turned inexperienced. Nonetheless, buyers should proceed to follow warning, as FOMO across the token may put an finish to this just lately initiated bull rally.
Solana buyers take pleasure in earnings
CoinMarketCap’s knowledge revealed that Solana’s worth surged by greater than 9% within the final seven days. Within the final 24 hours alone, the token’s worth elevated by over 4%, permitting it to as soon as once more contact $145.
Nonetheless, at press time, SOL’s worth witnessed a slight correction because it was buying and selling at $144.8 with a market capitalization of over $67 billion.
Due to the latest worth uptick, market sentiment across the coin turned bullish, which was evident from the large spike in its weighted sentiment.
Supply: Santiment
Nonetheless, although the aforementioned knowledge seemed optimistic, Santiment’s latest tweet identified a improvement that may trigger bother for Solana.
As per the tweet, whereas SOL’s worth gained bullish momentum, FOMO round it additionally elevated. Typically, an increase in FOMO amidst a worth improve typically places an finish to the bull run.
It was fascinating to know that Avalanche [AVAX] additionally showcased a bullish rally together with SOL. The excellent news for AVAX was that FOMO round it didn’t rise a lot.
Will SOL’s bull rally final?
Since there have been possibilities of SOL’s bull rally ending, AMBCrypto checked its on-chain knowledge to higher perceive what to anticipate.
Our evaluation of Coinglass’s knowledge revealed that SOL’s lengthy/brief ratio elevated. An increase within the metric is normally thought of a optimistic sign, because it signifies that bullish sentiment round an asset is excessive.
Supply: Coinglass
Nonetheless, Solana’s concern and greed index had a studying of 63% at press time, that means that the market was in a “greed” section. Every time the metric touches this stage, it signifies that the possibilities of a worth correction are excessive.
The Bollinger Bands’ revealed that SOL’s worth was getting into a much less unstable zone. Moreover, the Relative Power Index (RSI), after a pointy rise, registered a decline, indicating that Solana’s may quickly witness a worth drop.
The Chaikin Cash Move (CMF), however, continued to maneuver northward. The MACD displayed a transparent bullish crossover, hinting at a continued worth surge.
Supply: TradingView
Is your portfolio inexperienced? Try the SOL Revenue Calculator
Our evaluation of Hyblock Capital’s knowledge revealed that if the bull rally continues, then it received’t be shocking to see SOL go above $150 within the coming days.
Nonetheless, a correction may end in a drop to $141.
Supply: Hyblock Capital