- Solana price is down for the week just a little over 1% on Friday.
- SOL sees both its upside and downside potential caught between a firm cap and floor.
- With the current rally in Bitcoin price, bullish sentiment seems in favor, although a breakout is not granted just yet.
Solana (SOL) price is not holding attractive cards for upside potential in the longer run. Bulls were unable to make it all the way up to the cap this week and even saw a rejection happening a few cents before actually testing it. To the downside a pivotal supportive level at $19.04 keeps bulls from falling into the abyss that could see price action slide below $10.
Solana price will consolidate for a breakout trade in the coming weeks
Solana price thus needs to await a breakout as both cap and floor are currently proving too strong to be broken. Even with Bitcoin price rallying firmly this week, SOL is not enjoying the tailwind of it while other altcoins like Cronos are. This puts SOL in a rough spot and makes it less attractive for investors and bulls to engage with.
SOL will consolidate with buyers and sellers being pushed toward each other, followed by an overdue breakout trade. Expect that breakout to be bullish as Solana price will start to catch up with its peers in the altcoin space that have already rallied higher this week. Once both the 55-day and the 200-day Simple Moving Averages (SMAs) have been taken out, expect $28 to be a nice handle to book some profit for the bulls.
SOL/USD weekly chart
Big risk comes with a break of that $19 handle that underpins the price action in Solana. Once that breaks, a quick nosedive move could get underway. Not that SOL would go back to $8, but rather around $10 some support should be coming in, which still amounts to a 45% loss.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Mastercard to settle stablecoin transactions in Asia-Pacific region with Australian platform
Stablecoins have long been considered the safer option for bringing crypto to the world. However, the recent few instances of stablecoin collapses have raised concerns regarding the same as well. Even so, Mastercard is attempting to widen its reach in the Asia-Pacific (APAC) region.
How IMX could respond to Immutable's new partnership with Polygon Labs as gaming tokens trend this week
Immutable X and Polygon Labs have partnered for Web3 game development acceleration. The partnership comes ahead of launching a zkEVM-powered platform for studios and developers and a day into the GDC. The news could fuel a 43% upswing for IMX as the hype around gaming tokens continues.
Bitcoin price nears $30,000 despite banking crisis; First Republic Bank crashes by 47% in a day
Bitcoin price has managed to pull itself away from the narrative of being correlated to the United States stock market and macroeconomic conditions. The biggest cryptocurrency in the world has been rallying for more than a week now despite the ongoing banking crisis in the country, which is close to bringing down another bank.
MANA eyes 21% gains thanks to the world’s largest event for the art and science of game making
Decentraland price is on a 10-day uptrend as it moves diagonally along an ascending trendline. MANA could ascend 21.68% from the current price to tag the $0.7330 resistance level last tested on February 21. The bullish thesis could be invalidated if the gaming token drops below the uptrend line at $0.6015.
Weekly Recap: Bank runs, stablecoin drama, Voyager bankruptcy hearing, threat to DOX Shiba Inu founder
US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.