- Solana remains a key focus despite a broader market decline, with analysts predicting a potential rebound.
- Expert trader Raoul Pal believes SOL is oversold and may soon experience significant price growth.
- SOL’s Relative Strength Index dropped to its lowest level since 2022, signaling a possible recovery.
Solana’s price has remained a key focus despite the broader market decline. Expert trader Raoul Pal believes the coin is oversold and may rebound soon. Market indicators suggest potential growth, with analysts predicting a bullish trend in the coming months.
Solana Shows Oversold Signals, Analyst Predicts Rebound
Raoul Pal highlighted that SOL is currently at two standard deviations oversold on the log regression channel. He pointed out that SOL’s Relative Strength Index (RSI) recently dropped to 25.73, its lowest level since 2022. Historically, such levels have signaled strong recovery opportunities for the cryptocurrency.
Pal remains optimistic about Solana’s price action in the near term. He stated that this period presents one of the best opportunities to buy the dip. However, he clarified that he has not taken any new positions in SOL at the current price.
According to CoinMarketCap, SOL is trading at $137.16, reflecting a marginal 0.47% increase in 24 hours. The cryptocurrency has also recorded a 1.2% gain against Bitcoin within the same timeframe. Despite its recent decline, analysts believe a strong recovery could be imminent.
Historical Trends Suggest Strong March Performance
SOL has demonstrated strong price movements in March over the years. Cryptorank data shows an average growth rate of 32.4% for SOL during this month. If the trend repeats, the coin could erase its recent losses and push higher.
In March 2021, SOL surged by 49%, followed by a 23.2% increase in 2022. While 2023 saw a slight retracement of 3.25%, the cryptocurrency soared 60.8% in March 2024. Analysts believe the historical trend increases the likelihood of a similar price rally this year.
If Solana follows its previous March performances, it could recover from its 39.5% drop over the past month. Investors are closely watching the market for any confirmation of an upward move. Analysts suggest that a strong breakout could push SOL closer to its previous highs.
The recent dismissal of Coinbase’s lawsuit by the SEC has removed regulatory uncertainty for Solana. With the SEC clarifying that altcoins are not securities, market sentiment has improved. This shift in regulatory stance has positioned Solana for potential growth in the coming months.
The hype around a potential Solana exchange-traded fund (ETF) has also fueled investor interest. Franklin Templeton recently filed for a SOL ETF, increasing the likelihood of institutional adoption. If approved, this could significantly boost Solana’s market position and liquidity.