This double scenario for the Solana price could generate a nice profit or a ton of pain
|- Solana price coils within the 8-day exponential and 21-day simple moving averages.
- SOL price was rejected from a key Fibonacci level.
- A double scenario is underway, and critical levels have been identified.
Solana is bearing the brunt of the post-US CPI sell-off. Since August, the centralized smart contract token has been on a steep trend. The bulls prompted their first retaliation since September 7, but the CPI announcement on Tuesday has caused a shattering wound to all cryptocurrencies in the ecosystem.
Solana price currently auctions at $33 as the bulls and bears negotiate between the 8-day exponential and 21-day simple moving averages. Compressing the two moving averages around the price is a common occurrence that happens before sharp volatile moves. Traders should be cautious about the direction the Solana price will head next.
SOL USDT
The directional bias could lean in favor of the bears as a recent 50% Fibonacci level (based on the August high at $48.42 and recent swing low at $29.91) rejected the bulls at the $38 area while printing an uptick in bearish volume.
A breach of the swing at $29.91 could prompt a further decline of equal value to the August downtrend. Such a move would result in a 40% decline.
On the contrary, a daily close above $35 could send SOL price towards the 61.8% Fib level of the mentioned downward move at $40. The bullish move would result in a 20% increase from the current Solana price.
In the following video, our analysts deep dive into the price action of Solana, analyzing key levels of interest in the market - FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.