Solana (SOL) Faces Bearish Sentiments as Weighted Sentiment Falls to Negative Territory

The current social metric reveals a troubling trend for Solana (SOL) as the altcoin fails to sustain its 40% price gain.

Solana (SOL) price encountered a setback in its attempt to sustain its 40% price gain as the altcoin fails to hold on to its new all-time high (ATH). At the time of writing, SOL trades within the $225 level, slipping from its November ATH of $264.

Solana’s falling bullish sentiment is evident in its market capitalization position. Two days ago, SOL traded as the fourth most valuable crypto by market cap. However, with its market capitalization dropping to $107 billion, SOL has lost its fourth position to Tether (USDT).

After the development, Solana’s social indicators declined, particularly the weighted sentiment. Weighted Sentiment modifies values based on the number of mentions, normalizing data to make different asset sentiments comparable. This means spikes or dips in the metric will occur when a coin receives huge mentions.

A positive value implies that most remarks about the coin are bullish. On the contrary, a negative value means that most comments regarding the cryptocurrency are bearish.

According to data from the on-chain analytical platform Santiment, Solana’s weighted sentiment has fallen to negative territory. This implies that most market players are not optimistic about SOL’s short-term price movement.

If this pattern persists, demand for SOL may decline in the next few days. Social dominance, another indicator, also suggests that SOL’s price could face a further downturn.

Social dominance compares the degree of debate about a cryptocurrency to other assets on the market.

This metric rises when the conversations about the asset in question have increased, typically indicating bullishness.

For Solana, the social dominance indicator has declined from 8.42% on November 17 to 3.60% today. The drop in this reading suggests Solana’s price may find it challenging to recover to its ATH in the short term. Its price is down 0.55% in 24 hours to $225.07.

Solana’s Price Projections Based On Technical Indicators

4-hour chart displaying the EMA and key support levels for SOL

From a technical perspective, the 50-period Exponential Moving Average (EMA) on the 4-hour chart has crossed above the 20 EMA. For perspective, the EMA is a technical indicator that spotlights bullish and bearish movements.

Usually, a bullish trend is observed when the shorter EMA crosses above the longer one. The trend becomes bearish when the longer the EMA crosses above, the shorter. This crossover is known as a death cross, signaling a bearish trend.

In this case, the 50 EMA (red) is positioned above the 20 EMA (green), indicating a bullish trend. However, both the 20 EMA and 50 EMA are below the current market price, suggesting a bearish perspective.

Solana’s price could decline to $213.15 if the recent bounce is validated as a fakeout, according to the 4-hour EMA levels. However, this trend might turn around if the Solana social metrics turn bullish. In that case, SOL may rebound, with a potential target of $264.64.

As previously reported by CryptoNews Flash, analysts project a bold target that SOL could reach $300, drawing on a classic bull flag.

Many claim Solana’s growing appeal among developers positions it as a top choice among its competitors, per a CryptoNews Flash report.