Solana Price: Can SOL Initiate Next Altcoin Rally As Crypto Market Strengthens?

The crypto market fell victim to a major correction over the last few days, causing most cryptos to plummet. However, the good news is that the scenario has now started to change again in investors’ favor. Thanks to that, Solana price also is showing promising signs of recovery. Nonetheless, will this be enough for SOL to regain its recently lost market cap and help initiate a fresh altcoin rally? 

A closer look at Solana price action

As the bears led the market last week, Solana price plummeted by over 14% during that period. Nonetheless, the bulls gained control over the past day and lifted the coin’s price up by more than 12%—a clear sign of a possible full-fledged recovery.

In the meantime, Coinvo, a popular crypto trader and investor, recently posted a tweet, revealing an interesting development. The tweet highlighted that Solana price was approaching a massive trend line retest. SOL’s value today is successfully above that support zone, and is priced at $108. This further hints at a continued price rise in the coming days. 

Will the bulls maintain their lead?

Hyblock Capital’s data clearly suggested that buying pressure on Solana increased substantially in the last 24 hours. This was evident from its buy volume metric, which had a reading of over 99. A number closer to 100 represents increasing buying activity, while a number closer to 0 suggests that not many investors are purchasing a crypto.

Apart from this, it was also interesting to note that while SOL price declined over the last week, its open interest also followed a similar path, as per Coinglass’ data. Whenever the metric drops, it hints at a possible trend reversal. Ergo, now that Solana price has gained bullish momentum, the chances of a sustained uptrend can’t be ruled out. 

Altcoin season might be delayed

Nonetheless, nothing can be said with utmost certainty as a key market indicator remained bearish on altcoins, which includes Solana. The Altcoin Season Index had a reading of 18, meaning that it was heavily inclined towards Bitcoin. Though Solana price is on an uptrend, it’s quite unlikely to kickstart an altcoin season in the near term. 

Mentioning Solana price prediction, if bulls maintain their upper hand in the market as suggested by the aforementioned metrics, Solana price might soon reclaim $120 before targeting its March highs. 

Final Words

In conclusion, while Solana price shows strong signs of recovery and bullish momentum, a full-blown altcoin season still seems distant due to current market sentiment. However, sustained gains could position Solana to lead when the next altcoin rally begins.