Solana (SOL) Spikes +3.50% – A Quick Daily Outlook - Forex News by FX Leaders
Possibly Another Leg Down for Solana (SOL)

Solana (SOL) Spikes +3.50% – A Quick Daily Outlook

Posted Tuesday, December 21, 2021 by
Arslan Butt • 2 min read

The SOL/USD closed at $173.785, after placing a high of $181.085, and a low of $168.500. SOL/USD dropped for another session on Monday, extending its losses, despite various positive developments surrounding its ecosystem. The former US First Lady, Melania Trump, has said that she has plans to release NFTs, built on the Solana blockchain at regular intervals, through her website. The first NFT, titled “Melania’s Vision”, was made available for initial purchase on December 31, and it will cost one SOL. The NFT contains a recording by the former First Lady. This news should have pushed the SOL prices higher, but the token dropped in value on Monday.

SOL/USD

Furthermore, the prices of SOL/USD dropped, despite the weakness of the US dollar. The greenback was low on the market during Monday’s trading session, as the trading volume was low and traders were collecting profits ahead of the holiday season. The DXY, which measures the greenback’s value against a basket of six major currencies, dropped to 96.55, limiting the decline in SOL/USD.

Meanwhile, a senior professor of international trade policy at Cornell University, Eswar Prasad, told CNBC that Solana was better than Bitcoin. He said that Bitcoin might not last that much longer, as its use of blockchain technology is not very efficient. He criticized BTC over its validation mechanism for transactions, adding that it is also environmentally destructive. He believes that newer cryptocurrencies, like Solana, are better than BTC, as they enable DeFi platforms and websites to thrive, and facilitate the easy transfer and exchange of NFTs. 

Solana (SOL/USD) – A technical outlook

The SOL/USD coin is gaining immediate support at the 168.85 level. The overall trading bias remains bullish, and it could drive an uptrend in SOL/USD. A surge in buying could drive a further uptrend until the $189 or $197 resistance levels.

Conversely, the upward trendline supports the SOL/USD coin at the 176 and 168 mark. A break below 168 could expose the SOL/USD coin to the 157.95 level. The RSI and 50 EMA support an upswing; therefore, consider staying bullish above the 168 level. Good luck!

 

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