Solana (SOL), a cryptocurrency on a major support, will it rebound?

For this new Wednesday crypto nugget, the asset whose analysis has been most requested on our Twitter is the SOL from the Solana blockchain. In recent months, the asset has not had an easy life, problems have multiplied on the network between breakdowns and theft of funds. However, the price of the asset has not really been affected, it evolves in the same way as the majority of the cryptocurrency market. In this analysis, we will take stock of the price situation, the levels to watch and the most plausible scenario for the coming weeks.

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The SOL manages to preserve its weekly support

SOL rate against the dollar on a weekly basis

After an all time high at $259, the SOL had a very nice fall. at theweekly scale, the asset has been unable to free itself from its trio of EMA 13/25/32 for several months. Currently, the SOL is moving in a wide range with a low point at $25.98 and a resistance at $47.41. Until a bullish or bearish exit takes place, the asset will be amorphous and content with a move of a few dollars. In the event of a break below the low point, we will have to consider a return to lower levels that we have not seen since May 2021.

Within this range, we can identify a very important level which is located at 30.70/31.60 dollars. Doing support since June 2022, is this the end? The last two weeks a bearish breakout has taken place, the SOL is currently trying to break out of it in order to make a false breakout. However, if it fails to do so, it will be a clear sign: lack of vigor from the buyers, which could lead to the SOL returning to $25.98 quite quickly.

What should be monitored for a return to the upper limit of the range?

SOL price against the dollar on a daily scale
SOL price against the dollar on a daily scale

In addition to the issue of not losing support, which we mentioned above, let’s talk about the key levels to monitor in case of reintegration of the SOL above the 31.60 dollars. Just above is the POC at 33 dollars, this is the Point Of Control. This is the level where the volume exchanged is the most important, it can act as resistance for the price of the native token of the Solana blockchain.

What are the levels to monitor if the SOL manages to regain its daily POC?

  • The $34a daily resistance which corresponds to a High Volume Node of the volume profile
  • The MA 100 at $35.20. The price made a rejection on this level during the month of September.
  • The $38.30a technical level where the price has reacted many times as support or resistance.
  • In the event that the SOL has succeeded in regaining these different technical levels, we can consider on the VAH which is located at $42.30.

An underperforming asset against the king of cryptocurrencies

Price of SOL against Bitcoin on a weekly scale
Price of SOL against Bitcoin on a weekly scale

Against Bitcoin, the SOL situation is quite complex. After operating in the second half of June a good rebound on the 11500 satoshis, a former resistance in 2021, the asset failed to overcome the trio of EMAs, precisely the EMA13 on which the price has been chaining bearish rejections for several months. Underperformance is easily identified with descending troughs and peaks which are represented by red circles on the chart. Moreover, we can see the presence of a pivot level at 17,200 satoshis. Previously a support, it is now a resistance. A few weeks ago, a rejection took place on this level when it was in confluence with the EMA13.

We can envisage, for the moment, a continuation of the downward trend against the king of cryptocurrencies. This could result in a return to 11,500 satoshis. However, to witness a trend reversal, what should be monitored? Since the beginning of 2022, the SOL has never been able to break free from the trio of EMAs on a weekly basis. Thus, to register a lasting uptrend, it will be necessary to monitor a breakout of 17,200 dollars as well as a recovery of the EMA 32 which is currently at 18,377 satoshis. With price acceptance above these levels, the chances of a nice rise in SOL would be greater.

Here we are at the end of the SOL analysis for this Wednesday crypto nugget! Now you all have in your hands the different key levels to watch and the momentum that the price could take over the next few weeks depending on the evolution of the next few days. In the current situation, the bias to preserve is a long-term trend that is bearish. However, although the asset is underperforming against the king of cryptocurrency, a rise would not be impossible if it manages to resume its daily POC. So, what do you think ? If you want to invest in the financial markets, don’t forget to have an irreproachable risk management, it is essential in the current market context.

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John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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