After touching its lowest price in 2022, Solana (SOL) has rallied over the last few hours. The coin had struggled to cross above $50 after two consecutive days of severe losses. But it seems there is some bullish momentum right now that could push it further. Here are the details:
SOL has reclaimed the $50 price after surging nearly 20% over the last 24 hours.
Significant downside risks still remain despite today’s rally
SOL also remains below its 50 and 200-Day EMA suggesting it’s not out of the woods yet.
Data Source: Tradingview
Can Solana maintain this rally?
The broader crypto market has recovered after crashing over the last few days. Solana has in fact gained nearly 20% after seeing steep losses. However, the rally is not decisive. Analysts warn that what we are seeing is a slight pullback after the crash over the last two days. The overall downward trend in SOL has not yet reversed and as such, it is likely the coin will fall further in the days ahead.
Reclaiming the $50 mark was a big deal and an important psychological win for SOL bulls. But since the coin remains severely pressured below its 50- and 200-day EMA, we expect more weakness to follow.
SOL will likely drop below $50 once again and this time, it may fall even further before any rise. But if SOL can somehow continue the uptrend and close the day above $60, this thesis will be invalidated.
Is SOL offering the perfect dip?
One thing we can agree on is that Solana is a big project and is likely going to challenge Bitcoin and Ethereum in the future.
It was just the other day SOL was selling at around $200. The fact that you can get it now for less than $50 is a big deal. It’s by far the best dip-buying opportunity in the market.