Solana price experienced a significant correction in the crypto market in the past few days, along with other cryptocurrencies. However, there is good news for investors as Solana price is now showing signs of recovery, with a recent increase of over 12%. This positive momentum has led to speculation about whether SOL will be able to regain its lost market cap and potentially kickstart a new altcoin rally.
The recent price action of Solana has been closely watched by analysts and traders. Despite a 14% decline last week, the bulls have taken charge and pushed the price up by more than 12%, indicating a potential full recovery. A popular crypto trader, Coinvo, highlighted on Twitter that Solana price is approaching a crucial trend line retest, suggesting further price increase in the coming days, with SOL currently priced at $108.
Data from Hyblock Capital indicates a significant increase in buying pressure on Solana, as reflected by a buy volume metric of over 99 in the last 24 hours. Additionally, Coinglass data shows a similar pattern in open interest, which has followed the price increase, hinting at a possible trend reversal. These metrics point towards a sustained uptrend for Solana in the near future.
Despite the positive price action, the Altcoin Season Index remains low at 18, indicating that the market sentiment is still favoring Bitcoin over altcoins like Solana. While the current uptrend in Solana price is encouraging, it may not be enough to initiate a full-fledged altcoin season in the short term. However, if the bullish momentum continues, Solana price could target $120 before aiming to reclaim its March highs.
In conclusion, while Solana price is showing strong signs of recovery and bullish momentum, a full-blown altcoin season may still be distant due to prevailing market sentiment. However, continued gains in Solana could position the cryptocurrency to lead the next altcoin rally when it eventually begins. Investors should keep a close eye on key metrics and market indicators to gauge the future price movement of Solana and other altcoins.
