Solana (SOL) price has retreated toward $170 on Saturday, March 23, down 24% from the weekly peak of $210 recorded on March 17. On-chain data trends shows that Solana still holds significant investor mindshare.
Will the Solana price consolidation evolve into another leg-up or will the bulls succumb to a $150 reverse?
Solana social sentiment remains firmly positive despite price reversal
Solana started the week strongly with vibrant community activities commemorating the Layer-1 network’s 4th anniversary. In the wake of the celebrations, SOL price rapidly soared to a 2024 peak around the $210 territory on March 17.
Solana (SOL) 7-day price action | March 23, 2024 | Source: Coingecko
The Solana bulls staged another rally above the $190 level on March 19 amid positive speculations surrounding the launch of new memecoins SLERF and Book of Memes (BOME)
But a rapid profit-taking wave and the broader crypto market pullback has seen SOL price retrace toward $173 at the time of writing on March 23.
Despite the choppy SOL price action, investors and participants within the Solana ecoysystem has remained largely optimistic.
Santiment’s Weighted Sentiment chart tracks the dominant tone of social commentary surrounding a particular cryptocurrency project. Essentially, it weighs the number of positive comments against the negatives.
Solana (SOL) Weighted Sentiment vs. Price | Source: Santiment
The chart above shows that Solana Weighted Sentiment currently stands at 1.31 as of March 23. More importantly, it has consistently trended in positive values since March 5.
Weighted Sentiment values above 1 implies an that positive comments surrounding the project currently exceeds the number of negative comments.
Hence, this signals an overwhelming optimistic outlook across the Solana community despite the fluctuating SOL price action in the past week.
With the Bitcoin (BTC) halving looming and ETFs selling, many crypto investors are taking on a cautious approach.
If SOL community put their money where their mouth is, majority of investors will likely keep trading bullish as indicated by the weighted sentiment trend. This could see SOL price breakout towards $250
Solana (SOL) price forecast: Road to $250?
If SOL community puts their money where their mouth is, majority of investors will likely keep trading bullish as indicated by the weighted sentiment trend, possibly driving Solana price toward $250 ahead of the Bitcoin halving.
In the week ahead, the bulls could face initial resistance at the $207 area as depicted by the upper-limit Bollinger band indicator.
But given that SOL price just retraced from that area, the bulls could hold firms and set their sights on higher targets closer to $250.
Solana (SOL) price forecast, March 2024 | Source: TradingView
On the downside, if the negative market sentiment persists, the bears could attempt to force a downswing below $150. However, in the short-term the support buy-wall at the 20-day SMA territory at $163, could offer significant support.
This article was originally posted on FX Empire
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