After making modest gains over the weekend, Solana (SOL) has this morning followed other major cryptos in decline. Wider sentiment in the market is now highly risk-off with major coins and altcoins declining. But Solana may actually bounce back faster. We will explain why but first, some highlights:
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At the time of writing, Solana (SOL) was trading at around $82, down nearly 18% in 24 hours.
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The altcoin is also 64% down from the all-time highs that it reached in November 2021.
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There is still a lot of bearish pressure and headwinds in the broader market could make it even worse.
Data Source: Tradingview.com
Solana (SOL) – Will it bounce back?
Solana (SOL) appears to have found very strong support around the $87 mark. This is actually its five-month low, and bulls will hope to keep gains above that threshold. Also, it is important to note that the RSI reading shows that SOL is oversold. This means that there is very little room for a major sell-off, something that could trigger bulls to sweep in and buy the dip.
Although it is likely that the general trend for SOL will remain in the bear market, we expect the altcoin to report a corrective bounce in the pricing, rising to around $105 in the near term. SOL will also likely consolidate around that price, provided headwinds in crypto abate.
Should you buy Solana (SOL)
Solana has been a huge performer for the last few months. It is in fact seen as one of the hottest crypto assets to buy. Right now, it’s heavily discounted, allowing bulls to step in and own the asset.
Long term, Solana will grow no doubt. But short-term speculative traders can also take advantage of the corrective bounce and make gains for a short-lived bull run back to $105.