Last week we looked at Bitcoin’s Resistance above $71k, while today we check on the Solana retest in this current downswing. Crypto goes up and down, and you can play the field by trading these swings.
If you’re interested in improving your trading skills, study our recent Fibonacci Lines guide.
The Big Solana Retest
Solana’s price recently retested the critical support level of $150, resting on the 100-day EMA. Technical indicators hint at a possible rebound. SOL is currently near its upward trendline support and close to the significant $150 mark. In the latest trading session, SOL attempted a bounce but faced rejection at the 50-day EMA.
Despite this rejection, long-term projections remain bullish, suggesting a potential pullback soon. Solana is trading in a bullish region, yet it hasn’t shown any impulsive movements. Breaking the $170 mark could see SOL’s next target at $200.
At the time of writing, Solana trades at $151, with an intraday increase of 0.89%, showing neutrality on the charts. It has a monthly return of 3.20% and an impressive yearly return of 911.20%, indicating a long-term uptrend.
The SOL/BTC pair is at 0.0000308 BTC, with a market cap of $121.59 million. Analysts are neutral but optimistic, suggesting that Solana may soon rebound and outperform in upcoming sessions.
Analyzing Solana (SOL) Price Action
Daily charts reveal a price retracement for Solana, retesting the $150 level. SOL forms a rounding bottom formation, indicating potential for long positions. Investor interest remains strong, with trading volume rising over the past sessions. Notably, volume surged by 16% to $3 billion in the last 24 hours.
Momentum oscillators show mixed signals. The RSI hovers near the midline, indicating a negative crossover, while the MACD shows red bars on the histogram.
Surge in Volatility and Weighted Sentiment
This week saw significant volatility, hinting at speculative moves. Weighted sentiment data remains bullish, staying near the midline at around -0.036. Investors are closely watching the upcoming Solana ETF launch, which could drive SOL prices beyond the $200 mark.
Futures OI Data Reveal Short Covering
In the last session, SOL retested trendline support and rebounded, leading to short covering. Open interest value dropped by 4.30% to $2.07 billion, signaling a probable bounce.
Immediate support levels for Solana are $145 and $140, with key resistance at $157 and $165.
Conclusion on Solana Retest
Solana’s price retest is currently supported by the 100-day EMA and is eyeing a significant pullback. Price action suggests a potential bounce, with investors ready to re-enter the trade.
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