Solana price salvaged at last minute, but will it be enough to avoid implosion?
|- Solana price flirts with 10% gains in just two trading days.
- SOL received a last minute lifeline from equities that rallied late into the US close and triggered a positive spillover effect.
- SOL has more room to rally, depending on how long the equity rally can go.
Solana (SOL) price was set to drown in the big ocean of memorable financial meltdowns such as Lehman Brothers, Bear Stearns, the DotCom bubble and Enron. As it was set to go under, an unexpected lifeline got thrown in at the very last minute from equities that rallied into the US closing bell and triggered a wave of tailwinds that helped risk assets move higher. Is a Christmas miracle underway or is this just the intermission before the next shakedown?
SOL should come with the warning “Enjoy it while it lasts”
Solana price is ripping through resistance with almost 10% gains in just two trading days, though it will depend on where it closes this evening. The question is if it is enough to rebuff its dented image and lack of confidence that traders have when it comes to Solana. Depending on other reveals and fallout from FTX and Genesis, expect to see a possible leg higher as long as equities keep feeding that tailwind.
SOL thus remains at the mercy of equities and the slightly weaker USD that appears to be in some sort of short-term correlation. To the upside, gains look capped in SOL around 15% near $15.07 as that pivotal level broke on Saturday, November 12. Attempts to break above the level in the days after that failed. Depending on how extended the rally in equities will be, that level could break and see SOL rallying up to the red descending trendline to trigger some profit-taking. A small fade would likely then result.
SOL/USD daily chart
The above-mentioned levels could easily not be seen, should the stock market already see its rally from last night turn for the worst. The tailwind in SOL would evaporate, and we could quickly see it fading back toward $12. The additional risk then would be that it would only take one negative headline to push Solana price another leg lower toward $10 as no supportive elements are nearby.
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