Solanaโs Recent Surge Raises Doubts about Sustainability
Solanaย (SOL) has experienced a wholeย lotย of price surge recently, but one cryptocurrency strategist believes that this upward momentum may not last. Altcoin Sherpa argues that regardlessย of last weekโs rally, Solana (SOL) is still stuck in a downtrend, casting doubt on the sustainability of its current price movement.
Altcoin Sherpa notesย that a critical resistance level at around $19.50 that Solana (SOL) needs to overcome toย beย ableย to change its trajectory. The analyst likewise outlines a concerning pattern: Solana (SOL) has been forming lower highs consistently since reaching its peak of $32.30 in July. This pattern impliesย that each attempted rally has been met with increasing selling pressure, raising questions about the strength of the recent recovery.
โItโs nice to see some recovery, but every rally in the last few weeks has resulted in just a lower high. Regardless, if youโre in it for an investment, it canโt be bad to accumulate sub-$20.โ
Asย ofย now, Solana (SOL) is currentlyย worth $19.12, showing a modest 1.1% gain in theย previousย day and a seven-day rally of 4.5%.
Solana (SOL) Support Hinges On FTX Liquidation
If SOLโs latest rally loses momentum, Altcoin Sherpa identifies the $14 level as a probable support zone. Nonetheless, thereย is an important factor that could affect Solanaโs fateโthe imminent liquidation of a substantial Solana (SOL) stash held by troubled cryptocurrency exchange FTX, totaling $1.16 billion. The outcome of this liquidation could significantly impact Solanaโs price stability.
Probable Turning Point
In the worst-case scenario where the downtrend continues, Solanaโs price could soonerย orย later find support in the demand zone, marked by the last candlestick before the wholeย lotย of July uptrend began. This area tends to attract buyers and might serve as a probable turning point for SOLโs fortunes.
Althoughย while Solanaโs recent rally is exciting, itโs criticalย to exercise caution. Technical indicators and market dynamics suggest a possible toย continue of the downtrend. The cryptocurrency market remains unpredictable, so investors should carefully consider their options before getting involved.
Hot Take: Solanaโs Rally May Be Short-Lived
Regardlessย of a recent surge in price, there are doubts about the sustainability of Solanaโs momentum. Altcoin Sherpa isย warning that Solana (SOL) is still trapped in a downtrend, with lower highs forming consistently. Overcoming a critical resistance level at $19.50 is critical for changing Solanaโs trajectory. Altcoin Sherpa advises caution for those considering entering the market, but accumulating sub-$20 mayย be beneficial for long-term investments. The imminent liquidation of a substantial Solana (SOL) stash held by FTX could influence short-term price stability. Nonetheless, thereย is hope that Solanaโs price could find support in the demand zone if the downtrend persists. Regardlessย of excitement around Solanaโs rally, it isย crucialย to be cautious due to technical indicators and market dynamics pointing towards a possible toย continue of the downtrend.
Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding.
