After being dragged down by the overall cryptocurrency market downturn, Solana has rebounded by over 45% in three days. Let’s take a look at the future outlook for SOL price.
Location of Solana (SOL)
As Solana reached its last identified resistance at $190, the crypto market experienced selling pressure that halted SOL’s price advance. In one week, the cryptocurrency recorded a 45% drop, bringing its price down to $110. It is worth noting that this drop was fueled by poor economic results globally, as well as significant geopolitical tensions. Interestingly, the $110 level corresponded to a point of interest supported by a notable value area, which may explain the buying interest triggered at this level. Indeed, although Solana’s price fell below the $120 support, it quickly repositioned itself above this level, which seems encouraging for its future price.
At the time of writing, Solana’s price is trading around $155. Buying interest in the crypto seems to be persistent. These recent fluctuations have allowed SOL to buck its short-term bearish trend. Regarding the crypto’s medium to long-term trend, it remains bullish despite its price being just above its 50-day and 200-day moving averages. On the crypto’s momentum side, we see that it was down before rebounding recently. This is reflected in Solana’s price itself as well as its oscillators. Naturally, all of these elements are creating renewed optimism about the crypto.
SOL/USD Daily Price ChartThe current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. He is now a trainer at Family businessa community of thousands of independent traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Assumptions for Solana (SOL) Price
- If Solana’s price holds above $120, we could anticipate a bullish continuation up to the $170 level, or even $190. The next resistance to consider, if the bullish movement continues, could be between $205 and $210. Beyond that, we note Solana’s all-time high at $260. At this point, this would represent an increase of more than 67%.
- If Solana price fails to hold above $120, we could be looking at a move back towards the $110 levels. The next support to consider, if the bearish move continues, would be slightly below $100. Further down, we note the support at $86. At this point, it would represent a decline of around 45%.
Conclusion
Despite recent fluctuations and selling pressures across the crypto market, Solana is showing signs of resilience. The medium- to long-term uptrend remains intact and buying interest remains strong. These factors are contributing to renewed optimism for the crypto. However, it will be crucial to closely observe the price reaction at various key levels to confirm or deny current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.
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Family Trading is a community of self-employed traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including cryptocurrencies with Elie FT at its side, investor and passionate trader on the crypto market.
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