Solana is surprising experts with positive price performance despite bearishness around it
Solana’s price performance over the past 14 days was disappointing: the asset is slowly losing value and volatility in the market, while not finding any sort of volume for a reasonable recovery. However, the price performance of yesterday and today brings us a ray of hope.
In the last two days, Solana surprised the majority of investors with a solid 24% rebound. While the double-digit growth might seem like the beginning of a massive recovery rally, it is too early to celebrate.
Despite the strong growth we are seeing on the charts today, traders and investors should remain cautious. To negate the losses SOL has suffered over the past month, bulls would need to push the former Ethereum killer to the $31 price level, which corresponds to a 124% increase from the current price.
Such a scenario seems unrealistic considering the free 80 million floating on the market that might turn into real selling pressure for the assets and cause a flashcrash, with a high liquidation volume.
Technically, a short-term recovery rally is possible despite the bearish sentiment surrounding the cryptocurrency. However, recoveries at such times are considered “dead cat bounces” due to their inconsistent nature.
A potential price recovery might also be the result of a market correction; after the majority of digital assets became extremely oversold due to market-wide panic, an upward correction would come at some point.
At press time, $14.2 is the price level at which Solana has consolidated for the third time in the past two weeks. A rise in trading volume to 800,000 SOL could form the basis for a short-term recovery.