 ▲ Solana (SOL) / ChatGPT-generated image © |
Solana reacted like a high beta asset to Bitcoin’s rebound, rapidly reversing from a phase of extreme fear and posting a double-digit gain in a single day.
According to cryptocurrency market tracker CoinMarketCap on February 7 (local time), Solana (SOL) traded at $86.34, up 11.92% over the past 24 hours. During the same period, Bitcoin (BTC) surged 9.23%, lifting the broader market. The Fear and Greed Index registered “Extreme Fear” (index level 8), creating conditions conducive to contrarian rebound trades.
The primary driver of this rally was a beta-driven move in step with Bitcoin’s recovery. The market saw a narrative centered on spot buying at major exchanges, sharply improving risk appetite, and in this process Solana benefited more from returning capital flows than from asset-specific catalysts. Short-squeeze–type demand—buying driven by the liquidation or covering of short positions amid extreme fear—was also seen as amplifying the rebound.
Technical conditions further supported the bounce. Following the recent plunge, Solana’s 14-day Relative Strength Index (RSI) fell to 29.76, entering oversold territory and leaving ample room for a short-term rebound. At the same time, Layer 1 sector market capitalization rose 10.82%, outperforming the market average of 8.01%, confirming sector momentum toward large infrastructure chains.
A key inflection point in the short-term price structure is the $85.71 level, the 78.6% Fibonacci retracement support. Holding this level would put the next target near $99, corresponding to the 61.8% retracement. Conversely, a drop below the daily pivot at $81.89 could open the door to a retest of the recent low at $68.69. Market participants view a recovery above the 7-day simple moving average at $95.14 as a confirmation signal of rebound resilience.
Experts characterize this rise as “a market-synchronized rebound emerging from extreme fear and oversold conditions rather than asset-specific good news.” While the short-term bias tilts toward cautious optimism, sustainability is seen as contingent on Bitcoin’s ability to hold above $70,000 consistently. The prevailing view is that a daily close above $90 accompanied by strong volume is required to establish a durable bridge for further recovery.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses based on it. The content should be interpreted solely for informational purposes.*