Solana is struggling to maintain an upside trajectory as the altcoin descends toward key support levels. With the bearish performance of the general crypto market hindering Solana’s upward momentum, investors and crypto enthusiasts are beginning to demonstrate pessimism about SOL’s prospects.
Bearish Sentiment Deepens For Solana
In the past few days, Solana’s price is not the only aspect that the altcoin has experienced a notable decline. Leading on-chain data analytics and intelligence platform Santiment has reported a negative trend toward Solana among crypto enthusiasts and traders.
After navigating all social media platforms, Santiment highlighted that SOL’s market sentiment has fallen to its lowest point since the big retrace on January 20. Combining the negative and positive discussions, the altcoin boasts about 11.9% of all crypto discussions, marking its highest level since last month’s pump and dump.
The sharp decline comes in the midst of broader market weakness and increased selling pressure, with SOL dropping toward key support levels, raising concerns among investors. Presently, traders are exhibiting frustration over Solana’s price drop to the $161 mark, reflecting its 3-month low.
Historically, while the crowd attitude is negative and conversation rates are remarkably high, it is a sign that a price rebound is likely to occur soon. With a rebound possible in the near term, the current dip ultimately presents a buying opportunity if key support areas are maintained.
Santiment predicts a potential recovery because the market often moves in the opposite direction of the general audience’s expectations. Although there are no guarantees in the dynamic world of crypto, pro traders usually adopt the stance of being contrarians to whichever trajectory the crowd chooses.
Should a rebound occur shortly, this could put SOL in the spotlight by drawing in more investors, which would aid the altcoin in regaining its upward trajectory toward higher levels.
SOL Ahead Ethereum In Market Performance
SOL may face strong downward pressure, targeting key support levels due to a recent drop in the crypto market. However, comparing the altcoin’s price performance with Ethereum within the year, Solana appears to have outperformed the second-largest crypto asset.
Since the start of the year, Solana has performed better than Ethereum for 23 days out of 49 days. Glassnode determined this disparity in performance after examining the SOL/ETH chart in the 30-day time frame.
Nonetheless, the 30-day price change for SOL was at -32% as of February 17, indicating that the asset has been more vulnerable to recent market declines. Meanwhile, the 30-day price change for Ethereum is at -17%.
At the time of writing, Solana has picked up some steam, rising to the $168 mark with a nearly 3% increase in the last 24 hours. Traders’ sentiment is being bolstered by this slight increase as evidenced by a 2.92% rise in trading volume in the past day.
