Solana price retest the $170 territory on Thursday May 28, up 7% in the last 3 days, with investor sentiment improving, SOL could be on the verge of a major rebound.
Investor Sentiment Around Solana Flips Positive
Solana price has declined considerably in the past week as crypto investors redirected billions of capital toward Ethereum markets in the wake of the spot ETH ETF approval.
Solana SOL Price Action after Ethereum ETF Approval
Following the SEC’s green light on ETH ETFs, Solana price entered a 5-day loss streak, shedding 14.67% between May 21 and the close of May 26.
However, this week, on-chain data shows that investor sentiment surrounding Solana has improved significantly. Since May 26, the SOL price has rebounded 7% before rejecting at the $170 resistance on May 30.
Santiment’s Weighted Sentiment chart below monitors the daily difference between the number of positive and negative comments that a project attracts across relevant crypto-based social media channels, including Reddit, Twitter, Telegram, etc.
Solana Price vs SOL Weighted Sentiment
As seen above, the Solana weighted sentiment has flipped into positive values of 0.98 at the time of writing on May 30, just days after falling as low as -0.52.
This implies that Solana is currently attracting more bullish and positive online comments than negatives. This phenomenon often occurs when the market price momentum is nearing a local bottom.
As Solana investors back up their optimism with a flurry of purchases, SOL price will likely enter another leg-up in the days ahead.
Solana Price Forecast: Imminent Rebound to $200?
Drawing insights from the aforementioned on-chain insights, Solana price looks set to enter a major rebound phase. In affirmation of this stance, Solana’s 7.76% bounce in the last 48-hours puts it on the brink of reaching the 20-day SMA price of $168.74.
Solana Price Forecast
If SOL bulls can stage a decisive breakout above the $170 territory, it could catalyze a larger upswing toward the $200 area.
But in the event of a prolonged correction phase, Solana’s price could fall as low as $141 before hitting the next major support cluster.
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