⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

A Pause in Bullishness for Solana, but Buyers are not Done

A Pause in Bullishness for Solana, but Buyers are not Done

Posted Monday, September 13, 2021 by
Eric Nkando • 2 min read

After posting a high of above $214 on September 9, Solana’s bullish momentum seems to have waned, at least for now. At the time of writing, the crypto token was down 9.53% in the past 24 hours and showing some bearish moves. It has broken below the bullish trendline, which supports a further drop in prices in the short term.

SOL/USD – A Technical Outlook

Solana Bullishness Pauses. But Buyers are Not Done

Solana 4-Hour Chart Analysis

Looking at the 4-hour chart above, we see that SOL/USD is trending down after a break below the ascending trendline. Although there is no obvious factor for the bearish move, the price fall can be attributed to profit-taking, after Solana reached a fresh all-time high of above $214.

Remember that Solana has already gained more than 500% in the last 12 months. That could be more than enough for investors looking to cash in and jump back at the perfect moment when the token retreats back to viable support.

Fundamentals Supporting Solana’s (SOL/USD) Rise

Solana’s rise has been attributed to its growing popularity in NFT. Now, data is there to support SOL/USD’s unstoppable and potential continued rise.

Get this: as of September 10, the USDC locked on Solana was slightly below $2.5 billion, according to CEO and Co-Founder at Circle, Jeremy Allaire. The amount more than doubled in only a week.

A spot-check on Solana explorer shows that the current supply, as of September 13, is $2.485 billion, meaning that investors are still camping on the digital coin. The figure supports a bullish Solana in the medium and long-term. Investors should look to jump in at the right moment.

SOL/USD Trade Analysis and Idea

Solana has no clearly established support areas, given that it has been retreating only marginally, making higher highs and higher lows, to proceed to new highs. However, we can mark potential market indecision areas, which can guide us into predicting the next bullish turn.

$136 – I consider this level as the most likely support for SOL/USD. From the 4-hour chart, we see that SOL/USD was trapped at this level between September 3 and September 6, before posting another bullish run. If SOL/USD retreats to this level, I will watch for bullish trade signals to form before taking a buy on the crypto token.

$152- This target is more optimistic than realistic, as prices did not consolidate much at this level. However, we see that it is the level where SOL/USD started a bullish move following the crypto crash on September 7, before surging to a new record. SOL/USD is trading slightly above this level and seen recovering, albeit slower. Bullish signals at this level could also support a further rise in SOL/USD.

SOL/USD Concluding Thoughts

Solana’s rise is far from over. The rise in the USDC locked on Solana means investors are camping on the crypto token to take it higher. It could see the cryptocurrency hit previous and potential new milestones. For now, we will continue to monitor price action on SOL/USD for buy entries, with previous highs as our target take profit points. Happy trading!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments