- Solana price is set to close out the trading week with a solid gain – with provisos.
- SOL price is seeing a slowdown in its rally as this week will not be printing new highs for the summer.
- Expect to see some sideways-to-lower moves with vital confirmation needed next week of the rally’s extension.
Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role, after the orange ascending trend line saved the day again, and showed that price action is satisfactorily underpinned. However, downside risks threaten as no new highs have been formed, and a slowdown in the rally could be at hand, preluding a fall.
SOL price at risk of as much as 20% decline
Solana price has had a profitable and choppy summer rally, with key indicators such as the 55-day Simple Moving Average and the orange ascending trend line only coming into play in August. With this summer rally, the risk at hand is that SOL price might start to see a bit of a downturn as profit-taking gets underway, and more traders return to their offices only to find out that this rally has had its fun, but it is now time to get back to reality.
Thus, SOL could see a drop back towards $40, where it has already found support a few times at the orange ascending trend line and the 55-day SMA. Interest from bulls may start to fade as the Relative Strength Index is flatlining, showing that bears are catching up. With bulls focused on sitting in their positions towards $58, bears could stage a coup, and by the end of August, SOL price could be back to square one at $34, eating up the profits from the summer rally.
SOL/USD Daily chart
As mentioned, bulls are looking to keep this rally at full steam towards $58. The biggest element in the game is that several Fed officials are warning about the tight monetary stance against what the market is thinking. For example, some more dovish rhetoric from Powell could be the catalyst needed to propel price action towards $58, in so doing printing a whopping 35% in return.
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.
Recommended Content
Editors’ Picks
Google, Apple could remove Binance from their app store on Philippines SEC request
The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores. The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds.
XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations
Ripple filed its response to the SEC lawsuit on Monday, arguing that XRP institutional sales before and after the court ruling show no disregard for the law. The firm asks for a civil penalty of no more than $10 million against the $2 billion requested by the SEC.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?