Solana Price Corrects Lower but Remains Bullish
The price of SOL, the cryptocurrency of the Solana network, has experienced a downside correction after failing to surpass the $25 resistance level against the US Dollar. Despite this correction, SOL is still trading above $23.00 and the 100 simple moving average on the 4-hour chart.
Key Contracting Triangle Formation
A key contracting triangle is currently forming with resistance near $23.90 on the SOL/USD pair’s 4-hour chart. This triangle indicates that there is consolidation happening in the market, and a breakout above this resistance level could trigger a strong rally for SOL.
Potential Rally if Resistance Levels Are Cleared
If SOL manages to clear the $24 and $25 resistance levels, it has the potential to start a significant rally. A successful close above $25 could pave the way for further gains, with the next major resistance level located near $28.50 and potentially even reaching $30.00.
Will Dips Be Limited for SOL?
If SOL fails to recover above the $24.00 resistance level, it may continue to move downwards. The initial support on the downside is around $22.85 or the 50% Fibonacci retracement level of its recent upward move.
The first major support level is near $22.40, and if this support is breached, it could lead to a decline towards the $21.80 support level. In such a scenario, there is a risk of further downside towards the $20.50 support in the near future.
Technical Indicators
The 4-hour MACD (Moving Average Convergence Divergence) for SOL/USD is currently indicating a bearish trend, while the 4-hour RSI (Relative Strength Index) is above the 50 level, suggesting bullish momentum.
Hot Take: Solana’s Upward Momentum Faces Resistance
Despite a recent downside correction, Solana’s price remains in an overall uptrend. The formation of a key contracting triangle indicates consolidation, and a breakout above the resistance level could trigger a strong rally. However, SOL must overcome the $24 and $25 resistance levels to gain further upward momentum. On the other hand, if it fails to recover and breaks below key support levels, the price could experience more downside. Traders should closely monitor these levels and watch for potential breakouts or breakdowns in order to make informed trading decisions.
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.