Last week we examined Bitcoin’s resistance above $71k, and today we are taking a look at the Solana retest happening in the current downward trend. Crypto markets are always fluctuating, providing opportunities for traders to capitalize on these movements.
If you want to enhance your trading abilities, be sure to check out our recent guide on Fibonacci Lines.
The Significant Solana Retest
Recently, the price of Solana retested the crucial support level of $150, finding support at the 100-day EMA. Technical indicators are suggesting a potential rebound for SOL. The current price of SOL is close to its upward trendline support and is hovering near the important $150 level. In the most recent trading session, SOL attempted to bounce but was rejected at the 50-day EMA.
Despite this rejection, long-term projections remain bullish, indicating a possible pullback in the near future. While Solana is trading in a bullish region, there hasn’t been significant upward movement. Breaking the $170 level could set SOL’s next target at $200.
As of now, Solana is trading at $151, with a 0.89% intraday increase, reflecting a neutral sentiment on the charts. It boasts a monthly return of 3.20% and an impressive yearly return of 911.20%, suggesting a long-term uptrend.
The SOL/BTC pair is currently at 0.0000308 BTC, with a market cap of $121.59 million. Analysts are cautiously optimistic, predicting a potential rebound for Solana in the upcoming sessions.
Analysis of Solana (SOL) Price Movement
On the daily charts, Solana is in a price retracement phase, retesting the $150 level. SOL is showing a rounding bottom formation, indicating the possibility of long positions. Investor interest remains strong, with trading volume increasing in recent sessions. Notably, volume surged by 16% to $3 billion in the last 24 hours.
Momentum oscillators are showing mixed signals. The RSI is hovering near the midline with a negative crossover, while the MACD is displaying red bars on the histogram.
Increased Volatility and Weighted Sentiment
This week saw a surge in volatility, suggesting speculative movements in the market. Weighted sentiment data remains optimistic, staying around the midline at approximately -0.036. Investors are closely monitoring the launch of the Solana ETF, which could push SOL prices above the $200 threshold.
Futures OI Data Indicates Short Covering
In the last session, Solana retested trendline support and saw a rebound, leading to short covering. Open interest value decreased by 4.30% to $2.07 billion, signaling a potential bounce in the near future.
Immediate support levels for Solana are at $145 and $140, while key resistance levels are at $157 and $165.
Summary of Solana Retest
The current price retest of Solana is supported by the 100-day EMA and is showing signs of a potential bounce. Price action indicates a possible rebound, with investors preparing to re-enter the market.
If you find our content valuable, consider supporting us by signing up for a Binance Account using our referral link. Don’t forget to claim your bonuses for buying, selling, or trading crypto.
You may also find our other blog posts interesting, such as “NFTs are Dead in 2024” or “Increasing your Blast Airdrop with a 20x Multiplier.”
