Solana (SOL) has shown remarkable market resilience by holding its position above the 100-day Simple Moving Average (SMA) despite notable market turbulence. SOL has seen a lot of volatility in recent months, but has become firm support at this crucial moving average, indicating continued positive sentiment.
Solana’s ability to hold above its 100-day SMA shows that buying enthusiasm is outweighing downside pressure. This provides a good basis for future upward momentum and thus attracts the attention of traders and investors.
At the time of writing, SOL’s price was down -0.56% and trading at around $172. Its market capitalization was over $79 billion, and its 24-hour trading volume was over $1.9 billion. Both market capitalization and trading volume have fallen by -24% and -22.39% respectively.
Technical analysis of Solana
This analysis was performed using both the 4-hour and daily time frames using the 100-day SMA and the Relative Strength Index (RSI) indicators.
Solana is currently moving in a consolidating manner and building momentum above the 100-day simple moving average on the 4-hour chart. Judging from the price movement, it can be suggested that SOL could move upwards.
The 4-hour relative strength index is also actively positive as the RSI line moves above the 50% level. From this RSI formation, it can be suggested that SOL will drop slightly closer to the SMA before making a good move in an upward direction.
SOL on the 1-day chart also looks bullish as it tries to move higher after a rejection at the $160 support level. So at this point it can be suggested that the price of SOL could still potentially go up.
Finally, we can see that the daily RSI is high optimistic as it rejected a downward move at the 50% level and started rising again, indicating that the crypto asset is bullish and the price could make a run for it.
Potential price movements of SOL
As of now, Solana is moving up towards the $188 resistance level. If the price of SOL breaks this level, it will continue to rise to test the USD 205 resistance level and likely move further to reach a new high if it breaks above this $205 level.
However, if it is unable to overcome this resistance level, it will start falling towards the $160 support level. If the price falls below this support level, the price will continue to fall to test the $140 support level. Furthermore, SOL could witness a deeper correction to test the $118 support level on the chart if the above support level is broken.
Featured image from Adobe Stock, chart from Tradingview.com