Solana (SOL) has traded above $20.00, reaching $20.50 after recovering from $18.40 earlier this month. The question now is whether bulls can take advantage of the positive sentiment surrounding Solana to drive the price even higher.
Solana’s price has reached a significant technical level, with the 24-hour upside to $20.50 retesting a 10-day high that serves as a previous area of support and resistance. With a nearly 4% increase in the past 24 hours, Solana is outperforming all of the top ten cryptocurrencies by market cap except XRP.
Bitcoin has dipped back below $27k due to the SEC’s recent delays in making decisions on multiple spot ETF applications, including BlackRock’s. Ethereum has also experienced a decrease in price, despite news of the listing of the Valkyrie ETH futures ETF near $1,700. However, some whales are positioning themselves for a potential upswing.
Solana Price Outlook: What’s Next for Bulls?
The recent uptick in SOL price coincides with SOL bulls’ efforts to maintain above an ascending trendline support marked at the December 2022 buffer zone around $9.60. The daily chart shows that Solana has bounced higher off the positive trendline, following a breakout from the downtrend line that started from the July 2023 peak of $32.40 (source).
Crypto trader Bluntz has highlighted the potential for an inverse Head & Shoulder pattern, with a neckline at $20.30 and the 50-day exponential moving average serving as the immediate supply zone at $20.22. It is crucial for bulls to hold above these levels in order to achieve their short-term plans. The daily Relative Strength Index (RSI) also supports a bullish outlook as it remains above the neutral mark.
On the flip side, if Solana price breaks below the $18.80 demand zone, there could be increased sell-side liquidity pushing SOL down to around $17.60. Bulls may then rely on potential support near $14.50.
Is Solana a good investment?
Investing in Solana or any other cryptocurrency comes with risks and uncertainties. It is important to conduct thorough research and consider factors such as market conditions, project fundamentals, and personal investment goals before making any investment decisions.
What is the market cap of Solana?
The market cap of Solana is currently $8.3 billion, making it one of the top cryptocurrencies in terms of market capitalization.
What is the importance of the $20 level for Solana price?
The $20 level is a key technical level for Solana price. It has served as both support and resistance in the past, and a break above this level could indicate further upward momentum for the cryptocurrency.
What are the possible price targets for Solana if it breaks lower?
If Solana price breaks below the $18.80 demand zone, it could potentially decline to around $17.60. Further downside pressure could push the price towards the $14.50 support level.
What factors could influence the price of Solana?
The price of Solana, like any other cryptocurrency, can be influenced by various factors such as market trends, investor sentiment, regulatory developments, and technological advancements. It is important to stay updated on these factors to understand the potential impact on Solana’s price.
Solana price has reached a key technical level at $20, with bulls eyeing a potential breakout. The recent uptick in price follows a bounce off the ascending trendline support and a breakout from the downtrend line. The $20 level is crucial for bulls to maintain in order to achieve their short-term plans, with the potential for further upside if it is successfully broken. However, if the price breaks below the $18.80 demand zone, there could be downside pressure towards $17.60 and $14.50.