- SOL’s oversold state could provide an excellent buying opportunity, according to the analyst.
- Despite weak market sentiment, SOL reached key confluence support at $175.
Solana (SOL) has been the most oversold altcoin, but its decline of over 30% could be a great buying opportunity for some experts.
According to pseudonymous analyst Marty Party, SOL’s daily RSI (Relative Strength Index) has fallen to levels last seen in mid-2023. According to Marty, this was the ideal place to invest in altcoin.
Source:
Will $180 last?
Since its November high, SOL has fallen from $264 to a low of $175. But the pullback has hit a key confluence area that, if sustained, could validate Marty’s thesis.
Throughout 2024, SOL dumps reversed to the 100-day EMA (exponential moving average, blue). This pattern repeated in June, July and October.
Source: SOL/USDT, TradingView
As of this writing, the recent pullback has stabilized at the moving average ($175). Interestingly, this level also coincided with the golden level (61.8%) of the Fibonacci retracement tool, as measured from the September lows.
In most cases, price trend reversals occur at the golden ratio level. So, if the pattern repeats, SOL could reach $175 with a potential gap of $160.
That said, overall market sentiment was still negative towards SOL, which could be ideal for long-term investors considering discounted SOL.
Source: Santiment
But it’s also worth noting that this was the first time SOL sentiment had turned negative since November.
So, how is the market positioned at this key confluence and low sentiment level?
According to Coinglass, over 82% of top traders on the Binance exchange had long SOL positions.
Read Solana (SOL) Price Prediction 2024-2025
While this is a slight drop from the 84% level seen on December 19, it suggests that most players were still bullish on SOL. recovery perspectives.
Source: Coinglass
