- Analyst Raoul Pal identifies Solana (SOL) as significantly oversold, indicating potential for a price rebound.
- Historical data shows Solana often experiences price increases in March, suggesting a favorable trend.
- Regulatory developments, including a dismissed SEC lawsuit and a proposed Solana ETF, may boost investor confidence.
During the broader digital currency price decline Solana (SOL) gained rising attention among investors. On X Raoul Pal the expert trader observed that Solana SOL shows signs of being oversold while setting the condition for its next price increase.
Raoul Pal’s Analysis
The price of SOL measures at two standard deviations lower than its log regression channel proving strong evidence of overselling. The Relative Strength Index of Solana reached 25.73 on February 26 at a level that is much lower than the standard indicator for oversold conditions. According to Raoul Pal the current market position presents investors with a potential opportunity to purchase SOL shares despite his decision to refrain from new trades.
The price of Solana stood at $134.19 during February 28th with a minimal 0.04259% dip in its market value over the previous twenty-four hours. The price movement of SOL surpasses that of Bitcoin by more than 1.2% since the start of this period despite ongoing market fluctuations. The coin underwent a decline which reached 21% throughout the past seven days.
Historical Trends in March
The previous records indicate March tends to provide favorable conditions for Solana’s price performance. From March 2021 until March of 2022 SOL demonstrated two major price increases with 49% and 23.2% respectively. The price data for March 2024 brought about a remarkable 60.8% jump while the market showed a 3.25% loss during 2023. The established patterns indicate that Solana might recover during the upcoming month.
The U.S. Securities and Exchange Commission failed to establish investment contract tags for Solana during its Coinbase lawsuit which indicates potential regulatory relief for the token. Better regulations would support the growth of altcoins and specifically Solana because of their favorable impact. The Solana ETF filing submission by Franklin Templeton at the SEC could produce more institutional interest in addition to increased adoption.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
