Recent declines in the cryptocurrency market have put pressure on Solana's prices. However, experts and technical indicators suggest a potential for recovery soon.
Recent Decline and Expert Views
Renowned analyst Raoul Pal indicated that Solana is in an oversold region and could show signs of recovery soon. Certain technical indicators and historical data suggest potential for an upward trend.
Technical Indicators and Market Analysis
Raoul Pal highlights that Solana has reached the two standard deviation threshold in its log regression channel. The Relative Strength Index, which fell to 25.73, indicates the asset is in an oversold region, which in the past has suggested potential recovery. According to CoinMarketCap data, SOL's price has increased by 0.47% over the last 24 hours, despite losing 21% of its value in recent weeks.
Historical Trends and Expectations
Historically, Solana has recorded significant increases in March: 49% in 2021, 23.2% in 2022, and 60.8% in 2023. The average rise in March has been 32.4%, possibly repeating this year. Regulatory developments and a potential ETF approval could also increase institutional investor interest.
Based on historical trends and technical indicators, analysts indicate a likelihood of Solana's recovery. However, investors are advised to remain cautious and mindful of market fluctuations.
