- SOL price is up nearly 28% over the last week
- SOL Price is dangling on its near 3 week support trend
- 40MA has continued to act as support
Can Solana (SOL) Beat Ethereum in Its Own Game?
Solana (SOL) has outperformed nearly all other top 100 coins over the last few weeks as prices have risen from $70 to $220 in around 16 days. This price action has been fairly impressive as SOL is now a top 8 cryptocurrency by market cap.
Solana (SOL) is a highly functional blockchain project that aims to provide decentralized finance solutions using its highly efficient blockchain. SOL has many advantages to other blockchains such as ETH as SOL can process a massive amount of transactions for a little amount of cost.
All of these features have led many institutional investors to become bullish on the Solana ecosystem.
Over the last 3 weeks, SOL price has been holding above a support trend throughout its ride from $60 to $220. A top trend has also been forming which has rejected the price down each time SOL price managed to touch it. These trend lines have formed a pattern called an ascending broadening wedge which is a generally neutral pattern that will keep price within both trends until either one is broken. At the time of writing, Solana is fiddling with this trend as bulls attempt to keep price within it.
As long as SOL price can hold this trend, we should expect prices to rise back into the major resistance zone near $200.
Solana Price Analysis: SOL/USDT 4 Hour Chart
Ever since this bull run started back on the 26th of August, price has been supported by the 40MA (shown in orange). This MA happens to be directly in line with the major support trend that has been held this entire run up. In the case bears assert more control & pull SOL price below both of these marks, we should expect price to land near $167 at first. If this support fails to hold (which is likely) then we will see SOL price drop to its next support near the $150 mark. If this bearish scenario occurs, SOL will then be in a confirmed downtrend for the first time in nearly a month.
- While looking at the Stochastic RSI, we can conclude strength is severely oversold as it has been riding within the oversold region for over 2 days now. Strength must regain the 20 value which will also break its short term downtrend & will allow for further recovery towards $200.
- The MACD has been floating within bullish territory well above the 0 value for nearly 3 weeks now. As long as the MAs can hold above the 0 value, SOL price will likely experience a bullish bounce.
SOL Intraday Analysis
- Spot rate: $1178
- Trend: Bullish
- Volatility: Medium
- Support: $167
- Resistance: $181
The post SOL Price Analysis: As long as Solana (SOL) Holds this Trend, Prices to Rise Back Near $200. appeared first on Coingape.