The #Solana #cryptocurrency is now experiencing a corrective movement, rebounding from the resistance level of $25 versus the United States Dollar. The price of SOL continues to receive support and may perhaps target a new upward movement towards the $30 mark.
The SOL price initiated a downward decline subsequent to its inability to surpass the $25 barrier level in relation to the US Dollar.
Currently, the price is exhibiting a trading pattern that surpasses the value of $23.00 and is positioned above the 100 simple moving average within a 4-hour timeframe.
A contracting triangle is observed to be developing on the 4-hour chart of the SOL/USD pair, with a resistance level in the vicinity of $23.90. The data source for this analysis is Kraken.
The potential for a significant upward movement in price may be realised if the pair successfully surpasses the resistance levels around $24 and $25.
The price of Solana continues to exhibit an upward trend.
Following a consistent upward trajectory, Solana encountered difficulties in surpassing the resistance zone at $25. The SOL cryptocurrency saw a peak at a value of $24.82 and has since initiated a downward correction, similar to the price movement observed in Bitcoin.
A downward movement occurred below the levels of $24.20 and $22.00. The price was driven below the 23.6% Fibonacci retracement level, which corresponds to the upward movement from the swing low of $20.94 to the high of $24.82, by the bears. A significant contracting triangle is also observed, exhibiting resistance in the vicinity of $23.90 on the 4-hour chart of the SOL/USD pair.
The stock of SOL is now being traded at a value over $23.00, with its 100 simple moving average (4 hours) also taken into consideration. Currently, there are indications of positivity in the situation, and it continues to get support above the pivot level of $22.00.
One positive aspect is that there is a nearby resistance level at about $24.00, which is also located inside the triangle zone. The initial significant degree of resistance may be observed in the vicinity of $24.00. The primary level of resistance continues to be in close proximity to the $25.00 threshold. The potential for a significant upward movement may be established if there is a successful breach of the resistance level at $25.00. The subsequent significant level of resistance is about $28.50. Further increases in value might potentially result in the price approaching the $30.00 threshold.
Is the availability of dips restricted in the SOL?
In the event that SOL is unable to surpass the resistance level of $24.00, there is a possibility that it may experience more downward movement. The first level of support on the downward trajectory is around $22.85, which corresponds to the 50% Fibonacci retracement level. This retracement is measured from the lowest point of $20.94 to the highest point of $24.82 in the upward movement.
The initial significant degree of support may be observed in the vicinity of $22.40. In the event that the price experiences a closing below the support level of $22.40, there is a possibility of a subsequent slide towards the support level of $21.80. In the aforementioned scenario, there exists a potential for further negative outcomes towards the support level of $20.50 in the immediate future.
Technical indicators are tools used in financial analysis to provide insights into market trends and potential price movements. These indicators are based on mathematical calculations
The 4-hour Moving Average Convergence Divergence (MACD) indicator indicates a decline in momentum inside the negative region for the SOL/USD trading pair.
The Relative Strength Index (RSI) for the SOL/USD pair has surpassed the 50 mark within a 4-hour timeframe.
The major support levels for the given data are observed at $22.85 and $22.40.
The major resistance levels for the given asset are identified as $23.90, $24.00, and $25.00.