Predicting Steady Bottom Formation: Could Solana Face Troubling Times?

Predicting Steady Bottom Formation: Could Solana Face Troubling Times?


Solana’s Recent Surge Raises Doubts about Sustainability

Solana (SOL) has experienced a whole lot of price surge recently, but one cryptocurrency strategist believes that this upward momentum may not last. Altcoin Sherpa argues that regardless of last week’s rally, Solana (SOL) is still stuck in a downtrend, casting doubt on the sustainability of its current price movement.

Altcoin Sherpa notes that a critical resistance level at around $19.50 that Solana (SOL) needs to overcome to be able 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 implies that each attempted rally has been met with increasing selling pressure, raising questions about the strength of the recent recovery.

“It’s nice to see some recovery, but every rally in the last few weeks has resulted in just a lower high. Regardless, if you’re in it for an investment, it can’t be bad to accumulate sub-$20.”

As of now, Solana (SOL) is currently worth $19.12, showing a modest 1.1% gain in the previous day and a seven-day rally of 4.5%.

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Solana (SOL) Support Hinges On FTX Liquidation

If SOL’s latest rally loses momentum, Altcoin Sherpa identifies the $14 level as a probable support zone. Nonetheless, there is an important factor that could affect Solana’s fate—the 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 Solana’s price stability.

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Probable Turning Point

In the worst-case scenario where the downtrend continues, Solana’s price could sooner or later find support in the demand zone, marked by the last candlestick before the whole lot of July uptrend began. This area tends to attract buyers and might serve as a probable turning point for SOL’s fortunes.

Although while Solana’s recent rally is exciting, it’s critical to exercise caution. Technical indicators and market dynamics suggest a possible to continue of the downtrend. The cryptocurrency market remains unpredictable, so investors should carefully consider their options before getting involved.

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Hot Take: Solana’s Rally May Be Short-Lived

Regardless of a recent surge in price, there are doubts about the sustainability of Solana’s momentum. Altcoin Sherpa is 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 Solana’s trajectory. Altcoin Sherpa advises caution for those considering entering the market, but accumulating sub-$20 may 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, there is hope that Solana’s price could find support in the demand zone if the downtrend persists. Regardless of excitement around Solana’s rally, it is crucial to be cautious due to technical indicators and market dynamics pointing towards a possible to continue of the downtrend.

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Author – Contributor at | Website

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.

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