Solana: This minor setback didn’t stop the accumulation of SOL by day traders

  • After the interest rate increase, the SOL price fell by 4%.
  • However, this did not stop day traders from accumulating the alternative.

Solanas [SOL] The recovery to the $14.80 price tag ahead of the December 14 Federal Reserve meeting saw it lead the cryptocurrency market with the highest intraday high.

Contrary to expectations, the Federal Reserve raised the federal funds rate by 50 basis points, after four consecutive increases of three-quarters of a percentage point in recent months.

Read Solanas [SOL] Price forecast 2023-2024

This prompted SOL to trim most of its intraday gains to trade at $14.28 at press time, down 4% from the intraday high of $14.86 recorded on December 14.

There is no cause for concern

Despite the SOL price dropping after the Fed’s announcement, the on-chain valuation showed that the market was not experiencing mass hysteria, which often led to large token dumps in the past.

Data from on-chain analytics platform Santiment showed that SOL’s exchange funding rate remained positive even after the announcement. A positive funding ratio indicates that traders with long positions are in control of the market, which is often a bullish sign. At the time of writing, the average SOL funding rate is 0.000133.

Moreover, SOL’s social dominance did not register significant heights after the Fed’s interest rate hike. The sudden increase in the social dominance of an asset after a major event is often the market hysteria that usually leads to a price reversal. At a low incidence at the time of writing, SOL’s social dominance is pegged at 1.278%.

Source: feeling

Day traders say yes to accumulation

An SOL evaluation of the 4-hour chart to understand the behavior of day traders revealed a rise in coin accumulation.

At the time of writing, SOL is oversold as its major indices are positioned at oversold levels. For example, the Relative Strength Index (RSI) was positioned at 83.27. Similarly, on the upside, SOL’s Money Flow Index (MFI) is seen at 63.

Since the price hike, the SOL RSI and the Microfinance Index have steadily increased to remain tied to their current position. This showed that despite the slight price action following the Fed’s announcement, day traders did not stop buying SOL.

In addition, SOL’s Directional Movement Index (DMI) revealed buyers are in control of the market for the day at press time.

The strength of buyers (in green) at 32.47 was much higher than the strength of sellers (in red) at 15.97. In addition, the Average Directional Index (ADX) showed that the strength of the buyers was so strong that the sellers might not be able to reverse it in the short term.

Source: TradingView

At press time, SOL’s price is up 3% in the past 24 hours, and its trading volume is up 50% in the same period – the highest daily trading volume in the past week.

Source: feeling

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