Root
Reviews and LongReads
SOL Price Analysis: As long as Solana (SOL) Holds this Trend, Prices to Rise Back Near $200.

SOL Price Analysis: As long as Solana (SOL) Holds this Trend, Prices to Rise Back Near $200.

Do repost and rate:

Rated:102

Solana (SOL) has outperformed nearly all other top 100 coins over the last few weeks as prices have risen from $70 to $220 in around 16 days. This price action has been fairly impressive as SOL is now a top 8 cryptocurrency by market cap.

Solana (SOL) is a highly functional blockchain project that aims to provide decentralized finance solutions using its highly efficient blockchain. SOL has many advantages to other blockchains such as ETH as SOL can process a massive amount of transactions for a little amount of cost.

All of these features have led many institutional investors to become bullish on the Solana ecosystem.

Over the last 3 weeks, SOL price has been holding above a support trend throughout its ride from $60 to $220. A top trend has also been forming which has rejected the price down each time SOL price managed to touch it. These trend lines have formed a pattern called an ascending broadening wedge which is a generally neutral pattern that will keep price within both trends until either one is broken. At the time of writing, Solana is fiddling with this trend as bulls attempt to keep price within it.

As long as SOL price can hold this trend, we should expect prices to rise back into the major resistance zone near $200.

Solana Price Analysis: SOL/USDT 4 Hour Chart

Ever since this bull run started back on the 26th of August, price has been supported by the 40MA (shown in orange). This MA happens to be directly in line with the major support trend that has been held this entire run up. In the case bears assert more control & pull SOL price below both of these marks, we should expect price to land near $167 at first. If this support fails to hold (which is likely) then we will see SOL price drop to its next support near the $150 mark. If this bearish scenario occurs, SOL will then be in a confirmed downtrend for the first time in nearly a month.

While looking at the Stochastic RSI, we can conclude strength is severely oversold as it has been riding within the oversold region for over 2 days now. Strength must regain the 20 value which will also break its short term downtrend & will allow for further recovery towards $200.
The MACD has been floating within bullish territory well above the 0 value for nearly 3 weeks now. As long as the MAs can hold above the 0 value, SOL price will likely experience a bullish bounce.

SOL Intraday Analysis

Spot rate: $1178
Trend: Bullish
Volatility: Medium
Support: $167
Resistance: $181

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Domenic

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

Twitter