After finding support in the region of the $31 value level, the alternative cryptocurrency displayed a significant amount of positive action over the course of the past three trading days.
SOL had a difficult time gaining a foothold in the right direction, particularly in the first few days of September. This came about when the token finished the second half of August displaying bearish tendencies. The indecision that prevailed in the market was reflected in the lateral price swings that Solana experienced during the first week of September.
The investors' mood took a turn for the worse as a direct result of the unpredictability. The initial week of September reveals a precipitous drop in investors' sentiment, as measured by the weighted sentiment index provided by Solana. Following the dramatic increase that was observed over the course of the previous several days, price movements have not yet reflected the shift in sentiment that has been documented.
During the time of this publishing, Solana has seen a 13% increase after breaking through its most recent support mark and is now exploring the $34.80 value zone. Despite the fact that this might not be a huge increase, it demonstrates recoveries after dips that were lower than the support zone.
The current upswing is supported by the fact that market participants have re-accumulated in lower price zones, as seen by Solana's Money Flow Index (MFI). The alternative cryptocurrency is experiencing some resistance close to the 50% RSI (Relative Strength Index).
Because of this, there is a possibility of additional pullback taking place after an insufficient amount of bullish vigor. Thankfully, a significant increase in trading activity since the beginning of September has supported the current rise, although it is not the most significant increase in trading volume throughout the course of the preceding four weeks.
Additionally, the increase in the volume of trades involving non-fungible tokens (NFT) from the beginning of September encouraged organic volume and demand. A similar shift toward optimism can be seen in the derivatives market. In the meantime, this month saw some improvements made to the financing rates for both Binance and FTX. And that might have provided support for the overall upward trend.
The State of SOL
In spite of positive actions in other metrics, the fact that Solana's weighted sensation has not improved may give the impression that something is abnormal. Because of this, we are unable to consider the current rally to be robust. In the meanwhile, the negative mood may indicate that investors anticipate an increase in the very near future.
It is possible for attitudes to shift in response to positive developments that have the potential to instill more confidence among market participants. Nevertheless, admirers of Solana should keep an eye on the overall market.