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- Solana prices are showing signs of long term base formation in the support zone at $16.00
- SOL coin prices had reclaimed the 50 day EMA and were approaching towards the 200 day EMA for reversing the positional trend.
- Solana crypto prices lacked momentum near the crucial supply zone at $26.00
Solana price is trading with mild bearish cues and bears are trying to keep the price below the 200 day EMA, but bulls seem to be aggressive and likely to break out of the EMA soon. Currently, The pair of SOL/USDT is trading at $25.18 with an intraday loss of 1.29% and the 24-hour volume to market cap ratio at 0.2108
Will SOL prices consolidate before the next phase of the rally ?
On a daily time frame, Solana prices had witnessed a sharp recovery of 220% from the lows at $8.00 and succeeded in holding the prices above the 50 day EMA which indicates the short term trend has reversed in the favor of bulls. In the beginning of January, The SOL prices were undervalued due to lack of clarity in the future of Solana coin but later market sentiment improved and some aggressive buyers took the bet to accumulate the SOL at lower levels which had already rewarded them in the short span of time.
The SOL prices are rising upwards with the higher volume indicating genuine buyers have taken long positions and expecting the price to continue the upwards momentum but the 200 day EMA (green) and $28.00 will act as an immediate hurdle in the coming days followed by the next hurdle at $38.00 level. However, if bulls succeed to break out of the hurdle zone mentioned above the SOL prices might confirm the bullish trend reversal on the positional basis
The Solana prices had shot up 220% in a vertical slope and the RSI curve at (73) entered the overbought zone so it’s obvious that a minor correction or consolidation is possible in the coming days which will provide an opportunity for investors to participate in the rally at lower levels. The rising 50 day EMA (yellow) and $16.00 will act as an immediate support level for bulls. However, if prices slipped below $16.00 then the bears may try to test $8.00 again.
Summary
The Solana prices had shown surprising recovery and the coin had succeeded to reverse the short term trend in the favor of bulls. The technical analysis suggests that prices are likely to consolidate for some time near the supply zone at $28. However, if any correction triggers from the supply zone, it will provide a buying opportunity for the investors. Therefore, traders must add SOL coin to their watchlist to build long positions near to support zones for the target of $30.00 and above by keeping $15.00 as SL
Technical levels
Resistance levels : $28.00 and $38.00
Support levels : $16.00 and $8.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
