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. 

tm/sol/9/15/22

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

 


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