SOL Faces Bearish Pressure Amid On-Chain Divergence
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Solana (SOL) continues to exhibit bearish technical signals across multiple timeframes, with analysts identifying $50 as a key short-term target. The cryptocurrency's price action suggests a path of least resistance tilting downward, reflecting broader market uncertainty and potential selling pressure.
However, on-chain metrics present a contrasting narrative. SOL's MVRV (Market Value to Realized Value) indicator has reached what some describe as an 'extreme' state, historically associated with market bottoms. This divergence between price weakness and on-chain data creates a complex landscape where traditional technical analysis may not fully capture underlying market dynamics.
Traders should monitor whether the MVRV indicator's extreme reading will provide sufficient support to prevent another significant price decline, or if technical breakdowns will override on-chain signals in the near term.
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