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Momentum indicators have sent a buy signal as the Relative Strength Index (RSI) has crossed above the signal line while the MACD’s histogram has moved to positive territory.
Strong demand at these levels suggests that SOL could have hit a local bottom. Aided by FART’s rally, the token will likely retest its trend line resistance at $126 per coin meaning a 6% upside potential from current levels.
The macro backdrop continues to be quite unfavorable as Trump’s hostile measures have resulted in significant downward pressure for financial assets.
However, market sentiment has improved in the past couple of days as reflected by the Fear and Greed Index, which moved from a record low of 15 to 21 at the time of writing.
Entering a long position at this point seems risky. Short-sellers continue to have the upper hand in this environment as multiple variables favor further drops ahead for SOL.
A sharp drop in the price of FART could be the tipping point for this recovery. Hence, it is worth keeping an eye on how this meme coin performs in the next few days. In the past, these unjustified rallies have been met with correspondingly huge declines.
When that happens, FART will likely drag SOL as DEX volumes will once again dry up.
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