- SOL’s oversold condition presents a potential buying opportunity, analysts suggest.
- Despite prevailing weak market sentiment, SOL found key support at $175.
Solana (SOL) has emerged as the most oversold top altcoin, and its more than 30% pullback may provide an attractive buying opportunity according to some market analysts.
Analyst Marty Party, who prefers to remain anonymous, pointed out that SOL’s daily RSI (relative strength index) has fallen to levels last observed in mid-2023, making this an opportune moment to potentially buy the altcoin.
Will $180 Hold?
Since reaching a peak in November at $264, SOL has experienced a decline to a low of $175. However, this pullback has hit a crucial support level that could validate Marty’s bullish outlook if maintained.
Throughout 2024, SOL’s downturns have typically reversed at the 100-day EMA (Exponential Moving Average, blue), a trend observed in June, July, and October.
As of now, the recent downturn has stabilized at the moving average of $175, which interestingly aligns with the golden level (61.8%) on the Fibonacci retracement chart, measured from the September lows.
Typically, price trend reversals tend to occur at this golden ratio level. Thus, if this pattern is consistent, SOL might find a bottom at $175, potentially deviating down to $160.
Despite this, the market sentiment surrounding SOL remains negative, making it potentially appealing for long-term investors looking for discounted SOL.
It’s important to note that this marks the first instance of negative sentiment for SOL since November.
So, what is the market sentiment surrounding this crucial support level amid the broader negative atmosphere?
According to data from Coinglass, over 82% of top traders on the Binance exchange are holding long positions in SOL.
Read Solana (SOL) Price Prediction 2024-2025
Although this figure slightly declined from the 84% level recorded on December 19, it indicates that a majority of market participants remain optimistic about SOL’s recovery potential.
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