Solana faces tough competition from Polygon in the NFT space and the blockchain’s weakening fundamentals and overheated price hint at the possibility of a steep correction.
Bearish divergence spotted in SOL/USD chart. The Moving Average Convergence Divergence indicator shows a bearish divergence in the daily SOL/USD chart. The Relative Strength Index which measures the market’s momentum also moved to oversold territory, raising the possibility of further correction.
The long-to-short ratio in the future market still shows a slight bearish inclination of 51.5% in shorts versus 48.5% in longs. This will likely provide fuel for the last leg up in SOL/USD.Conversely, a breakout above $33 level can cause a surge toward $135. Unless the Solana foundation establishes major partnerships like Polygon, or show improved usage data, the above seems highly unlikely.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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