Solana is a blockchain-based platform that enables users to build decentralized applications. It is a cryptocurrency that has recently experienced a surge in price, but at the moment, the price has become consolidated. With Bitcoin staying below the $25,000 belt, altcoins have been experiencing congested price action below their immediate price ceilings, including Solana.
The coin has dropped nearly 3% in the last 24 hours and is now trading below $26. However, the technical outlook for SOL remains optimistic as demand and accumulation were still positive. As the altcoin managed to break above many resistance levels in the last week, the daily chart is yet to reflect the bearishness. If demand wobbles, SOL might fall through its local support level.
Solana’s price has been trading between $23 and $26, respectively. If the altcoin manages to breach the upper belt of the range, then there could be another rally and a shift to bullish price action. The market capitalization of Solana fell at the time of writing, which reflected that sellers had become more active.
When looking at the one-day chart, Solana was trading at $25.29 at the time of writing. It was trading relatively close to $26, the present overhead ceiling. Demand for SOL needs another push for the price to break past the $26 level. If SOL manages to move above that level, then the altcoin might attempt to trade near $29 before it starts correcting. Conversely, if buyers don’t exert pressure, Solana might fall to $23 and then to $21. The amount of Solana traded in the last session was high, meaning the coin experienced selling strength.
The technical analysis of the coin shows that the altcoin recovered on the chart, and so did its buying strength, but as SOL lost momentum in the last 24 hours, buying strength dipped slightly. The Relative Strength Index noted a downtick, despite the indicator being above the 60 mark. This reading indicated that even though buying pressure fell, buyers overpowered sellers. The Solana price was also above the 20-Simple Moving Average line (SMA), meaning buyers were driving the price momentum in the market.
The Moving Average Convergence Divergence indicates price momentum and a change in trend. The indicator formed green histograms tied to buy signals. Buy signals usually indicate an increase in price over the next trading session. The Awesome Oscillator also reads the price trend. The indicator formed green signal bars above the half-line, which signified bullish movement.
Despite the bullish signals, Solana’s inability to cross the overhead resistance will cause a setback to the altcoin’s price movement. The coin is still relatively new, and as more people become aware of its potential, the price could increase. However, it is important to note that the volatile nature of the cryptocurrency market means that the prices can change quickly, so it is important to do thorough research before investing.
Overall, Solana is a promising altcoin, and its recent surge in price has shown its potential. Despite the current bearish momentum, the technical outlook for the coin remains optimistic. The coin has managed to break above many resistance levels in the past week, and if it can move past the $26 level, then the price could surge again. However, if buyers don’t exert pressure, the price could fall to $23 and then to $21.
It is important to do thorough research before investing in any cryptocurrency. With the volatile nature of the market, prices can change quickly, so it is important to understand the risks before investing. Solana is a promising altcoin, and its recent surge in price has shown its potential. Despite the current bearish momentum, the technical outlook for the coin remains optimistic.