SOL’s path of least resistance tilts toward $50 but onchain data hints at a bottom

💡 DMK Insight

SOL’s bearish trend is raising eyebrows, especially with analysts eyeing a short-term target of $50. The MVRV (Market Value to Realized Value) indicator being in an ‘extreme’ state suggests that SOL might be undervalued, but that doesn’t guarantee a rebound. Traders should be cautious; if SOL breaks below key support levels, it could trigger further selling pressure. The broader market sentiment is also shaky, with many altcoins following Bitcoin’s lead. If BTC struggles, SOL could face additional headwinds. On the flip side, if SOL manages to hold above $50, it could attract buyers looking for a bargain, especially if the MVRV indicator stabilizes. Keep an eye on the daily charts for potential reversal patterns or volume spikes that could signal a shift in momentum. Watch for any news that could impact overall market sentiment, as that could sway SOL’s trajectory significantly.