The selling pressure that Solana has faced in recent weeks is clearly evident in both its performance against the dollar and price movements on a Bitcoin basis. While RSI, one of the most important indicators in technical analysis, decreased to 35.8 on the weekly chart, it draws a picture similar to Solana’s pricing during the 2022 bear market period. It is reported that investors are acting cautiously as SOL has not shown a strong recovery after continuing its horizontal course for a long time.
RSI and Bear Market Similarity
According to the data provided by More Crypto Online, which has a wide following in the crypto community, Solana’s weekly RSI showed a chart close to the bear market period in 2022. At that time, SOL had moved sideways for a long time and reached its lowest levels. Currently, the appearance of similar signs in the market is being followed carefully among investors.
More Crypto Online stated that the oversold level seen in February gives hope for a possible recovery. However, he emphasized that RSI, as a technical indicator, does not constitute a definitive signal that it has bottomed on its own, and that the market structure carries the risk of remaining weak unless the price makes a clear upward movement.
“A movement similar to early 2022 is becoming evident in Solana; the current structure will remain valid before the net rise begins,” the analyst evaluated.
While the RSI on the weekly chart is moving higher, the price is still well away from previous highs. Solana is stuck in the range of around $80-85 after the recent decline. The fact that it is well below the old cycle peak of $200 indicates that selling pressure continues. Analysts state that only a low RSI value is insufficient for a sustainable rise, and that the recovery cannot be confirmed unless a strong buying wave occurs.
Annual Lows in SOL/BTC Parity
According to the Binance weekly chart shared by Ted, SOL/BTC parity dropped to 0.0010 BTC levels. This area was the last bottom seen by Solana in October 2023. The decline of the parity to this level clearly reveals the momentum that Solana has lost against Bitcoin.
SOL/BTC, which peaked between 0.0028 and 0.0030 BTC late last year and at the beginning of this year, has steadily lost value since then. All the benefits of the rapid rise seen especially in the meme coin season have been completely erased by the current price movement. In other words, Solana lost all the speculative advantage it had over Bitcoin.
The shared star chart shows that Solana has repeatedly made lower highs against Bitcoin, failing to surpass the previous high with each attempt to recover.
This chart shows that during periods of weakening confidence in crypto markets, Bitcoin increases pressure on more volatile assets like Solana. Technically, for a new upward movement, the SOL/BTC parity must break out of the lower regions and make high closes on a weekly basis. Otherwise, the existing weak outlook may continue.
General Outlook in the Market
According to analysts’ comments, although the weekly RSI’s slight recovery from the oversold region has slightly boosted morale, there is still cautious pricing for Solana. Investors are not ruling out a repeat of the bear market in 2022 unless they see a clear uptick and significantly strengthening price action.
In addition, investors think that a strong buyer wave is needed to overcome this weakness in Solana in the short term, otherwise a horizontal and under pressure course may occur.
