- According to analysts, SOL’s oversold condition could provide a great buying opportunity.
- Despite weak market sentiment, SOL reached a key confluence support at $175.
Solana [SOL] has been the most oversold top altcoin, but its more than 30% pullback could be a great buying opportunity according to some experts.
According to pseudonymous analyst Marty Party, the SOL’s daily RSI (relative strength index) has fallen to levels last seen in mid-2023. According to Marty, this was an ideal place to extend the altcoin.
Source:
Will $180 hold?
Since peaking in November, the SOL has fallen from $264 to a low of $175. But the pushback has hit an important area of convergence that, if held, could validate Marty’s thesis.
Throughout 2024, SOL’s dumps have inverted at the 100-day EMA (Exponential Moving Average, blue). This pattern repeated itself in June, July and October.
Source: SOL/USDT, TradingView
At the time of writing, the recent pullback has stabilized at the moving average ($175). Interestingly, the level also coincided with the golden level (61.8%) of the Fibonacci retracement tool, measured from the September lows.
In most cases, price trend reversals occur at the golden ratio level. So if the pattern repeats, SOL could reach a low of $175 with a potential deviation of $160.
That said, overall market sentiment was still negative on SOL, which could be ideal for long-term investors looking for discounted SOL.
Source: Santiment
But it’s also worth noting that this was the first time since November that SOL sentiment turned negative.
What is the market positioning at this key confluence level and weak sentiment?
According to Coinglass, more than 82% of the top traders on the Binance exchange had long SOL positions.
Read Solana [SOL] Price prediction 2024-2025
While this was a slight decline from the 84% level on December 19, it suggested that most players were still optimistic about SOL’s stock price. recovery prospects.
Source: Coinglass
