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Solana Soars Over $140, But Will This Bull Rally Last?

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By Dewey Olson - - 5 Mins Read
Solana | Dennis Diatel / Shutterstock.

Solana's recent price surge has caught the attention of investors. In the past week, the cryptocurrency rose, with its value climbing by more than 9%. This surge has prompted celebrations among Solana bullish investors, who have endured a period of bearish movement. 

However, some caution is necessary, as the excitement around Solana could quickly end this bull rally.

Recent Price Surge

According to CoinMarketCap, Solana's price has increased impressively, gaining over 9% in the last seven days.

In the past 24 hours alone, its value jumped by more than 3.83%, pushing it to touch the $145.

At this level, Solana's market capitalization stands at over $67.3 billion.


 SOL/USD 7-day price trading chart

SOL/USD price chart | CoinMarketCap


The recent surge in Solana's price has generated a lot of excitement among investors, evident from the substantial rise in its weighted sentiment.

This shift suggests that the market is now more Solana-bullish. However, such rapid price increases often attract Fear of Missing Out (FOMO) among investors, which can lead to a quick reversal of the bull run.

Signs of Potential Trouble

Santiment's recent tweet showed a concerning development for Solana.

The tweet noted that as Solana's price increases, the Fear of Missing Out (FOMO) around it also increases. Generally, when FOMO rises together with a price increase, it often causes the end of a bull run.

Interestingly, another cryptocurrency, Avalanche (AVAX), has also seen a bullish rally. However, unlike Solana, the FOMO surrounding AVAX did not rise as much.

Further analysis of Solana's on-chain data provides additional insights. Coinglass's data revealed that Solana's long/short ratio has increased.

An uptick in this metric is usually considered positive, as it indicates high Solana bullish sentiment around the asset.

However, the fear and greed index for Solana was at 63% at press time, meaning that the market was in a "greed" phase. Historically, such levels indicate a higher chance of a price correction.

Technical Indicators

Several technical indicators also suggest that Solana's price might soon face challenges.

The Bollinger Bands showed that Solana's price was entering a less volatile zone, often preceding a period of price stability or decline.

After a sharp rise, the Relative Strength Index (RSI) registered a decrease, indicating potential upcoming price drops.

On the other hand, the Chaikin Money Flow (CMF) is moving upwards, and the MACD (Moving Average Convergence Divergence) shows a clear bullish crossover, suggesting that the price surge could continue.

Hyblock Capital's data analysis indicates that if the bull rally persists, Solana might surpass $150 in the coming days. However, if a correction occurs, the price could drop to $141.

Market Sentiment and Investor Caution

Due to Solana's recent performance, the market sentiment around it has been positive. However, the rising FOMO is a cause for concern.

FOMO-driven investments can lead to rapid price fluctuations and increased volatility. Investors should be aware of Solana's price history and how similar patterns have played out in the past.

Looking at Solana price history, it has experienced different price swings. Understanding these patterns can help investors make informed decisions.