Like many altcoins in the market, the price of Solana (SOL) has increased over the past 24 hours. This is a positive development for the token, which is up 13% over the past seven days.
However, on-chain indicators suggest that this rally could be short-lived.
A big warning for Solana bulls
At press time, the SOL price is at $158, its highest since August 11. Despite this increase, Solana’s social dominance has declined.
Social dominance measures how much attention a cryptocurrency receives compared to others. A high percentage indicates increased discussions about Solana, which may be key to maintaining its upward momentum.
However, SOL’s social dominance dropped to 2.58% from 4.50% on August 19. This decline suggests that market enthusiasm for the token may be waning.
If social dominance continues to decline, SOL’s rally could lose momentum. In the worst case scenario, the price could fall much lower than the gains seen in the past few days.
As shown above, when social dominance declines during an uptrend, the rally usually stalls. If history repeats itself, SOL could be headed for a decline.
In addition to social dominance, Solana’s weighted sentiment has also turned negative. According to Santiment, this metric tracks the general sentiment towards a cryptocurrency across all social media platforms.
When sentiment is positive, social media comments tend to be more optimistic about the outlook. On the other hand, negative sentiment reflects a pessimistic forecast, which is now the case with SOL.
Read more: Solana vs Ethereum: An Ultimate Comparison
This shift in sentiment suggests that market participants may be losing confidence in sustainable growth despite recent price increases.
SOL Price Prediction: Mixed Signals on Different Charts
According to the daily chart, the SOL price might face resistance at the upper interest points at around $163.93.
If the token’s uptrend is rejected at this point, it could start a decline and possibly fall to $150.84. In this region, the bulls seem to have formed a strong support system that could prevent further decline.
Meanwhile, the SOL price formed a bullish Adam and Eve pattern on the 4-hour chart. This pattern is in the form of a V-shaped bottom (Adam) followed by a U-shaped consolidation phase, signaling the start of a new uptrend.
As shown below, the SOL price has broken above the neckline of the technical pattern. If this uptrend continues, the bearish bias analyzed on the daily chart could be invalidated.
Read more: The 13 best Solana (SOL) wallets to consider in August 2024
Specifically, a sustained upswing could see the token rise by 10% to $172.83. In a very optimistic scenario, the native Solana token could reach $187.33.
Disclaimer
Per the Trust Project’s guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions can change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy and Disclaimer have been updated.
