Solana experienced a significant wave of profits since he reached his summit of $ 295.83 on January 19. This resulted in its price down several months, the play currently negotiating at levels visible for the last time in October.
However, the data on the chain and key technical indicators suggest that a recovery could be on the way.
Solana hits the capitulation phase – What’s the next for Sol?
An assessment of the Floor / USD graph of a day shows that the relative force index of the part (RSI) fell below level 30 for the first time since June 2023.
When an active ingredient falls below 30, it is deemed overlooked. This often points out a potential reversal or a price rebound because traders are looking for purchase opportunities at low price. Historically, such conditions of occurrence have preceded net rebounds.
Therefore, Sol could be ready for a rally if market players interpret this as a purchase signal and increase their accumulation of parts.
Another indicator of a short -term potential rebound in the soil price is its bad feeling of the market. In an article on X, the popular crypto analyst Miles Deutscher declares that Altcoin has been experiencing an extreme bearish feeling, the worst he has had for over a year since he found the price level of $ 100.
According to Deutscher, “after being the most efficient for so long”, Sol “finally has its moment of capitulation”. The capitulation refers to a phase where investors, exhausted by prolonged losses, are starting to sell their assets in panic or frustration, often marking a bottom of the market.
Indeed, once the “hands of the paper” are sold, the sale pressure on the ground market developed, opening the way to a rebound if the buyers interested in acquiring the room at low prices intervene.
Floor flat near the key support – will the bulls push it at $ 200?
Sol is negotiated at $ 141.67 at the time of the press, resting slightly above the support level of $ 136.62. If the Altcoin witnesses a resurgence of the purchase pressure, this level of support will strengthen, propeling the soil price around $ 182.31, where a major resistance resides.
A successful violation of this level could send the price of the part above $ 200 to exchange hands at $ 222.14.
On the other hand, if the downward trend continues, the soil price could fall to $ 120.72.
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