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Why Solana (SOL) Remains Uncertain Despite 13% Surge to $30 Vicinity

Why Solana (SOL) Remains Uncertain Despite 13% Surge to $30 Vicinity

Finally, Solana has taken a side in the ongoing bulls versus bears conflict. After finding safety near the $31 price level, alternative token price activity has been overwhelmingly bullish for the past three days.

SOL had been having trouble finding its bearings, especially in the first few days of September. The token had shown bearish tendencies by the end of the month of August, thus this was a reaction to that. Indicative of the widespread uncertainty permeating the market, Solana’s price moved sideways throughout the first week of September.

As a result of the unpredictability, investor sentiment took a dive. Investor optimism dropped precipitously in the first week of September, as measured by Solana’s weighted mood index. There has been a significant increase in price over the past few days, but this has not yet been reflected in a change in sentiment.

Prospects for $SOL

In the time period covered by this article, Solana has had a 13% increase from its most recent low, allowing the stock to test the $34.80 price level. While this isn’t necessarily a dramatic upswing, it does demonstrate rebounds after drops below the support area.

The current upswing is supported by the fact that market participants have re-accumulated at lower price zones, as shown by Solana’s MFI (Money Flow Index). There is resistance for the alternative currency near the 50% RSI level (Relative Strength Index).

If there isn’t enough bullish strength, that could lead to a further retracement. Fortunately, the recent upswing has been supported by a huge increase in volume since early September, but it is not the highest volume seen in the prior four weeks.

In addition, the increase in the volume of NFT (non-fungible token) trades beginning in early September bolstered both natural volume and demand. A similar upbeat change is visible in the derivatives market. While this was happening, funding rates on both Binance and FTX improved this month. As a result, that might have supported the ongoing bullish trend.

Condition of SOLs

Despite progress in other parameters, Solana’s weighted sensation may seem to be stagnating. The current upswing is too weak to be considered strong. Low confidence, meanwhile, may indicate that investors anticipate a price increase in the near future.

Possibilities for a shift in emotion exist when positive developments occur and stimulate increased market confidence. Nonetheless, Solana supporters can increase their profits by keeping an eye on the market as a whole.

Royal Seed
Royal Seed is a brand new contributor to Alltechcraft, and his writings focus on cryptocurrency news and platform reviews. We highly suggest keeping up with his most recent writings, since they are both quite insightful and fascinating. (Follow him on [email protected]_nba )