At the time of writing the price level of Solana (SOL) is at $22.99 which is 13.10% higher than in the past 24 hours. These figures suggest that SOL appears to be shedding the bearish sentiment that has suppressed it for an extended period. Moreover, a surge in buying activity has propelled SOL to create a new higher high on the chart, indicating a momentum shift that is now in favor of the bulls.
Solana Breaking the Barriers
Solana has achieved a significant milestone with a decisive daily candlestick close above key Exponential Moving Averages (EMAs) like the 10-day, 50-day, 100-day, and 200-day in the $20 range.
Note that this breakthrough has also resulted in a higher high compared to the previous peak of $20.54 seen on September 19. While the price action for Solana is undeniably bullish, there are positive indications from momentum indicators as well, namely the Relative Strength Index (RSI) and the Awesome Oscillator (AO).
Specifically, the RSI has crossed above the 50 mean level on the daily chart (currently at 67.36), indicating an increasing strength of the bullish sentiment. On the other hand, the AO is also above the zero mean level, following the RSI. This means that traders should monitor the AO closely, as this crossover above the zero level may trigger a significant upward movement in SOL, potentially leading to increased volatility.
Evaluating Solana’s Positive Outlook
The initial target for SOL traders stands at the $23.2 level, making it an appealing prospect for short-term investors. However, the significance of this threshold becomes even more apparent when viewed from a long-term perspective. If this barrier can be transformed into a solid support base on the daily chart, it has the potential to trigger a substantial surge in Solana’s price.
Although the positive outlook for Solana appears sound, taking into account recent price developments and momentum indicators, it’s crucial for investors to exercise caution. A sudden surge in selling pressure leading to a daily candlestick close below the $19.27 support level would establish a lower low, undermining the bullish scenario.
However, investors should remain vigilant and monitor key support levels closely. Ultimately, while the path to higher price targets seems promising, it’s important to remember that the cryptocurrency market is inherently speculative and can be subject to rapid changes.
Solana (SOL) has seen a minor 0.09% price increase to $19.00, but it’s trapped in a bearish technical pattern. Attempts to break free from the descending parallel channel faced resistance at the 21-day EMA ($19.51). The chart indicates a possible downturn, with diminishing momentum (RSI) and the Awesome Oscillator (AO) in negative territory. If selling pressure increases, SOL might test the midline near $18.00 or drop further to the demand zone. A bullish scenario requires a breakout above the channel and a decisive close above $20.23, but SOL currently faces a challenging bearish pattern with uncertain prospects.
Solana (SOL) at Critical Juncture: Bearish Signals on Daily Trend Amidst Network Developments *(Update 17 August 2023)
Solana (SOL) is currently experiencing a bearish daily trend due to multiple factors, including its failure to breach the crucial $27 resistance level and a lower high formation. The daily Relative Strength Index (RSI) falling below 50 further supports the bearish momentum. SOL’s price must close above $27 to validate a bullish trend. However, if the downward movement continues, it could potentially drop by 35% to $16. Meanwhile, Solana’s network has seen both positive developments, like Saga Mobile’s efforts to boost adoption, and challenges, such as a security breach in the Cypher protocol. The cryptocurrency’s price around $27 remains pivotal for its broader trend.
Sheikh is a co-founder and key member of the Wiki Crypto team, known for his expertise in macroeconomics, monetary policy, and fundamental analysis of both traditional and cryptocurrency assets. He is also well-versed in the future of blockchain technology and the current state of cryptocurrency regulation in Eastern Europe and the Middle East. In addition, Sheikh has a background in online news media and Digital Marketing and is skilled in building a multi-language crypto news outlet with a global reputation.