Looking to Buy Solana Crypto (SOL) As This Blockchain Keeps Expanding
Solana has been bullish for a week, is the bearish period over for SOL?
The cryptocurrency market went through a correction phase in the last three months, with many major cryptos losing more than half their value on the way down. But, the correction might be over now, since the bearish momentum has been over for more than two weeks now. In fact, buyers have been in control over the last week, and it now it seems like the crypto market could be resuming the larger bullish trend.
Solana Weekly Chart Analysis – The 50 SMA Holds as Support
The retreat seems complete on the weekly time-frame
Solana had an amazing year in 2021, surging from around $2 at the beginning of the year, to $260 by November. But, in the last three months, Solana has been suffering, due to the negative sentiment in the crypto market, which dragged SOL/USD down.
But, the pullback might be over, as the weekly chart suggests. The stochastic indicator is oversold, and the 50 SMA (yellow) has turned into support. Last week, we saw a bounce off this moving average, after the doji candlestick – a bullish reversing signal after the retreat – that we saw last week.
So far this week, we haven’t seen a follow-through of last week’s bullish momentum, but nonetheless, Solana remains a good investment opportunity around the $100 level. So, if the price retreats to the 50 SMA again, we would be inclined to open a buy signal.
Solana H4 Chart Analysis – Buyers Are Pushing SOL Above MAs
The 50 SMA has turned into supportÂ
On the H4 chart, the picture looks like it is turning bullish too. After the bearish reversal in November, the price fell below all moving averages, which turned into resistance. But, the support zone around $80 held and buyers kept pushing the price above the smaller moving averages.
Now only the 200 SMA (purple) remains as resistance. It rejected the price in the first attempt, but the 50 SMA is not letting go at the bottom. So, it looks like buyers will push Solana above the 200 SMA soon, which would be a strong bullish signal, supposing that the market doesn’t turn bearish again.
Solana Daily Chart Analysis – The 50 SMA Will be the Test for Buyers
The 20 SMA has been broken alreadyÂ
On the daily chart, moving averages, particularly the 50 SMA (yellow), turned into support during the bullish period last year. But, the bearish reversal started in November, and Solana slipped below all moving averages, breaking the support zones as well. The smaller MAs turned into resistance eventually, as the decline picked up pace, but now the 20 SMA has been broken to the upside after the reversal. Although, the 50 SMA will be the real test for buyers, since this moving average has been the ultimate support and resistance indicator on this chart.
The Solana network keeps expanding, with the latest move being the launch of Solana Pay, which is a decentralized payment protocol. This will enable merchants and e-commerce platforms to accept crypto payments through digital wallets. Recently, Solana raised $109 million in funds for its native wallet, Phantom. Besides that, OpenSea is planning to add support for Solana and Fantom wallet, so all this progress will keep making the Solana network more interesting and keep SOL bullish as well. Therefore, we are looking to buy Solana around the $100 level.
Solana Coin SOL Live ChartÂ
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