- Solana had been struggling to leave the oversold region for weeks
- SOL’s projection, at the end of the year, indicated stagnation in the bearish region
At one point, crypto investors tipped Solana [SOL] become the “Ethereum [ETH] killer” because it offered better speed and scalability than the latter. A while back, the permissionless DeFi solution acted like it was up to the task. However, his recent conduct has shown that SOL can now be a shadow of his old self.
Read At Solana’s [SOL] Price prediction to 2023-24
On the one hand, Solana’s seven-day performance had produced a decline of 6.74%, according to CoinMarketCap. But that was not the bone of contention.
Help save a “SOL”
Although the market moved sideways last week, SOL’s case appeared to require immediate drastic action. Besides the price drop, the weekly chart showed Solana invalidating upside potential as the Relative Strength Index (RSI) was at 30.36.
The region represented an oversold SOL condition. Moreover, it has the potential to go below since November 7.
Since it has been in this zone for an extended period, expecting a near-term price reversal might not be the case. Solana’s troubles didn’t start with the latest crashes. In addition to producing a grueling annual performance, FTXit is the collapse also added to the bruise.
Indeed, the embattled founder of the exchange, Sam Bankman-Fried (SBF) who was accused of mismanagement, was a vocal maxi of SOL. Thus, this also had a negative impact on the confidence in the future of the project.
In the race to end 2022 strong, SOL appeared non-existent. Besides its deep trip into oversold territory, the Directional Movement Index (DMI) has maintained selling power.
The indications for the DMI revealed that the +DMI (green) and -DMI (red) trended at arm’s length. While the -DMI settled at 29.69, the +DMI remained below at 15.32. The Average Directional Index (ADX) suggested a strong direction for the reds. As a result, the most likely SOL move would be a price drop.
The race to get out of neglect
Regardless, Solana was struggling to regain investor confidence and some yielded only minimal results. As revealed by Saniment, SOL-weighted sentiment remained negative at -0.56. Meanwhile, it fell slightly to 0.611 on December 11.
Nevertheless, the state still confirmed a drop in Solana’s social volume. Moreover, it represented an increase in gloomy opinions towards the asset.
Through its price volatility, the on-chain data showed SOL’s fluctuation higher in the past week. Since 0.058 represented an increase, this implied that investors should exercise caution when buying SOL based on other factors.
To conclude, SOL was heading in a bearish direction at press time. However, positive ecosystem updates could be key to reversing the tide. Sure, Bitcoins [BTC] movement could also include future SOL trends.