Solana rallies 16% after SOL RSI drops to 2023 low: Was that the bottom?

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Solana (SOL) price dropped to a 2025 debased astatine $125 connected Feb. 28. However, the altcoin entered a 16% alleviation rally aft the Chicago Mercantile Exchange (CME) announced the motorboat of Solana futures connected March 17. The futures merchandise present awaits regulatory support from the Commodity Futures Trading Commission (CFTC).

🚨 NEW: CME Group to motorboat Solana futures connected March 17, pending regulatory reappraisal by the CFTC. pic.twitter.com/sGJDXxgDQr

— Cointelegraph (@Cointelegraph) February 28, 2025

Solana bears neglect to pin SOL nether $130

Since Feb. 24, Solana has formed a bid of little lows starring up to its yearly debased astatine $125 connected Friday. During this period, a wide bullish divergence formed betwixt the terms and comparative spot scale (RSI).

Markets, Price Analysis, Market Analysis, Altcoin Watch, Solana

As illustrated successful the chart, the rally connected the 4-hour illustration took spot astatine the backmost of these bullish divergences. The bullish awesome led to BTC’s plaything signifier nonaccomplishment connected the 1-day chart.

A plaything signifier nonaccomplishment is simply a inclination reversal indicator that is utilized to observe weakness successful the ascendant inclination and place imaginable reversals.

As analyzed, Solana is presently looking to adjacent supra its erstwhile 3 days, and a confirmed adjacent supra $143 volition validate the bullish SFP. The alleviation rally occurred pursuing the RSI entering an oversold territory, marking its lowest level since June 2023, erstwhile Solana was priced astatine $15.

The contiguous overhead absorption remains astatine $160. Flipping this level into enactment volition further validate $125 arsenic the section bottom.

Will SOL sell-off again successful March?

As wide discussed over the past month, Solana’s token unlocks spell unrecorded connected March 1, which volition spot 11.2 cardinal SOL entering the circulating supply. There volition beryllium a 2.84% summation successful the full marketplace cap, which is worthy $1.62 cardinal astatine the moment.

The unlock lawsuit is mostly investor-based, with companies specified arsenic Galaxy, Pantera and Figure looking to unafraid betwixt $150 cardinal to $3 cardinal successful unrealized gains.

While the larger marketplace expects volatility aft the event, Keyrock Trading, a crypto markets shaper platform, predicted the result based connected investigation information from much than 16,000 token events.

Keyrock Trading highlighted that investor-based unlocks witnessed an mean of 5% correction 30 days earlier the event. In this case, SOL suffered a important 60% diminution implicit the past month.

The level termed the unlock lawsuit arsenic a medium-size (1-5% supply) and stated,

“Medium unlocks historically spot an ~8% diminution wrong 30 days post-unlock.”

Based connected the data, SOL is expected to witnesser immoderate signifier of downward unit for the abbreviated word aft March 1. Jeremy, a crypto trader, predicted different little debased is connected the cards for the altcoin, wherever Solana whitethorn signifier a bottommost astir $110-$120. However, the trader remained unfastened to the script of $125 being a beardown enactment level.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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