|

Solana price prediction: This is why a 26% decline may not be on the cards for SOL

  • Solana price is maintaining its presence above the immediate support level, trading at $24.27.
  • Sideways movement over the last few trading sessions highlights a cool down from the 151% rally.
  • As long as SOL keeps above $19.30, it is safe from a decline, as losing this support level would invalidate all bullish thesis.

Solana price rally took a break over the last few days as the Ethereum killer managed to cater to every bull in the last three weeks. Going forward, traders looking to long the altcoin are expecting another similar rally that would push the cryptocurrency to recover the losses it accumulated following the November 2022 crash.

Solana price rise slows down 

Solana price has been hovering around the $24 mark for more than ten days now, with the altcoin trading at $24.41 at the time of writing. Although the altcoin has maintained a sideways momentum for the last couple of trading sessions, it is still in an uptrend with indications of further rise.

Firstly the 30-day Exponential Moving Average (EMA) and the 50-day EMA are actively acting as support for the altcoin. Additionally, the Relative Strength Index (RSI) also recovered from the overbought zone above 70.0 to slip back down into the bullish zone. These indicators highlight a bullish narrative for Solana price going forward, which is crucial in a recovery to $36.90.

In order to reach the November 2022 highs, though, buyers need to push Solana price above the critical resistance at $28.28. Flipping it into a support floor would enable SOL to mark a rise to $32.06, which is crucial in the altcoin’s recovery and to push the price to $36.90.

SOL/USD 8-hour chart

SOL/USD 8-hour chart

Nevertheless, if the bulls do not regain control of the price action, the possibility of a decline also looms over SOL. If Solana price loses its immediate support, a decline to $19.30 is certain, and if the altcoin fails to bounce off this support, the critical support at $17.89 would be tagged. A daily candlestick close below this level would invalidate the bullish thesis, pushing the price to $15.90 and lower, marking a 26% crash.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

More from Aaryamann Shrivastava
Share:

Editor's Picks

Ripple and Stellar outlook: XRP rally cools, XLM heads toward a make-or-break support

Ripple and Stellar trade under pressure after losing over 2% and 3% so far this week. XRP and XLM are both nearing their crucial support zones, which could determine the next directional move. Meanwhile, mixed derivatives and on-chain data suggest upside potential remains limited for both altcoins. CryptoQuant’s summary data shows cautious signs for both altcoins.

Crypto Overview: Bitcoin dips below $78,000 – NEAR, ZEC sustain gains

Bitcoin trades below $78,000 maintaining a near-term corrective tone amid hawkish macroeconomic factors. US bond market shrugs off the US Treasury's increase in buyback operations to $6 billion in long-term debt as yields continue to rise, signaling an insufficient step amid the ongoing war with Iran.

Bitcoin outperforms global assets as $83K-$86K resistance zone continues to weigh on rally

Bitcoin has continued to recover from its mid-year weakness, outperforming major traditional assets over the past month, amid strong resistance around the $83,000 to $86,000 range. BTC gained 23% over the past 21 trading sessions, while the S&P 500 and Nasdaq 100 were broadly flat and the Euro Stoxx 50 declined, according to a Glassnode report published Wednesday.

Ethereum Price Forecast: ETH holds near $2,500 amid derivatives weakness
Ethereum (ETH) holds steady near $2,500 on Wednesday amid weakness in derivatives and mild buying dominance in spot markets. Since the short squeeze that expanded ETH's rally toward $2,500 in late August, meaningful leverage has yet to return to support the uptrend.
Bitcoin: Gearing up for a sharp move
Bitcoin (BTC) is trading around $81,000 on Friday, up over 4% so far this week, and awaits a key catalyst that could determine its next directional move. Strong institutional demand is supporting the bullish price action, with spot BTC Exchange Traded Funds (ETFs) on track to record a third straight week of inflows.