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- Solana appears to have taken a pause following an incredible rise in value to an all-time high of $82
- The cost of the second was estimated to be roughly $64. Both of these levels have previously produced modest rallies and are expected to do so again in response to the selling pressure
- While there was a risk that SOL will fall further in the short future, purchasers had a window to get SOL at a bargain
Solana appears to have taken a pause following an incredible rise in value to an all-time high of $82. At press time, lower highs and lower lows were seen on SOL’s 4-hour timeframe, as the altcoin remained in a downturn. However, this provided traders with an opportunity to purchase SOL at a lower price before the next rally. On the chart, some entry points were found, and a cautionary flag was placed around $58. SOL was trading at $67.5 at the time of writing, with a market capitalization of $19.72 billion. After an impetuous breakout was met with swift rejection at $80, SOL proceeded to trade in a down-channel. Short-sellers would be able to commence further drawdowns if a lower low was recorded below $64. After that, buyers should be wary of a closing below $58 since it would jeopardise SOL’s overall trend.
While an unfavourable outcome appeared to be in the cards, significant events on SOL’s daily chart should be noted as well. SOL was preparing for a bull flag breakthrough on a longer timeframe. This indicated that retracements at press time were well within a bullish long-term forecast. A few levels that could cause a bullish reversal can be assigned significance from here on out. The first, and possibly most critical, zone was $66-$67.6. The cost of the second was estimated to be roughly $64. Both of these levels have previously produced modest rallies and are expected to do so again in response to the selling pressure.
On separate timescales, the RSI appeared to be forming two narratives. The daily RSI was comfortably within the bullish area, whereas the 4-hour RSI was in a downtrend and traded below 40. This implied that the possibilities of a near-term collapse were strong, but bulls were projected to keep control of the situation generally. The 4-hour Awesome Oscillator and MACD both traded below their half-lines, which isn’t unusual in a down-channel. Expect these indicators to climb back beyond their equilibrium levels if SOL finds support in the aforementioned zones. While there was a risk that SOL will fall further in the short future, purchasers had a window to get SOL at a bargain. As SOL prepares for a bull flag breakout on its daily chart, zones between $64 and $66 would be great zones to go long. However, if SOL closes below $64, there are some vulnerabilities that could lead to another correction.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
