Solana Price Sparkles With 9% Increase, But Why Do Buyers Remain Cautious?
August 12 2023 - 6:24AM
NEWSBTC
Solana (SOL) has managed to shake off recent price dips, rekindling
bullish optimism among investors. This resurgence comes on the
heels of a determined effort by sellers to flip the altcoin’s
trajectory bearish, following a price rejection at the critical $29
resistance level. However, SOL’s retreat from this resistance
proved to be a strategic move as it found support in the bullish
order block (OB) at $22, setting the stage for a renewed uptrend.
SOL’s journey from the formidable $29 price mark to the bullish
order block at $22 was pivotal. A recent price analysis has
underscored the importance of this OB as a key level for the
altcoin’s potential reversal of fortunes. Related Reading:
Shiba Inu Keeps Energy Alive, Snags 26% Gain – Here’s The Inside
Scoop With a long-term perspective in mind, Solana’s ability to
rally from this OB demonstrates the resolve of buyers to reclaim
control. This recovery has not only bolstered sentiment but also
signified the strategic importance of this price juncture in
steering the trend. BTC’s Influence On SOL’s Trajectory One notable
factor underpinning Solana’s current narrative is the role of
Bitcoin (BTC), the flagship cryptocurrency. As SOL seeks to flip
the $25.3 resistance level into a supportive base for further
gains, its success may very well depend on the continued bullish
advance of Bitcoin. The interplay between these two prominent
cryptocurrencies remains a significant aspect to monitor, as BTC’s
trajectory often influences the broader altcoin market sentiment.
At present, Solana stands at a price of $24.50, as per CoinGecko
data. Despite a slight decline of 1.0% over the last 24 hours, the
altcoin has showcased a commendable seven-day rally of 8.8%,
indicative of its capacity to rebound from adversities.
Solana weekend price action. Source: Coingecko However, a notable
challenge emerges as SOL inches closer to the $25.7 mark. The
impending supply pressure at this level could potentially stall the
upward momentum, prompting a sideways trend and leading to a
consolidation phase. Solana: Clearing The Path Forward Should the
SOL price encounter intensified supply pressure around the $25.7
threshold, a distinct possibility is the emergence of a narrow
price range during trading sessions. This consolidation phase,
while seemingly a temporary lull, may serve a vital purpose. By
trimming away weaker positions, this period could pave the way for
a definitive directional movement. Solana market cap nearing the
$10 billion level. Chart: TradingView.com Related Reading: Rising
Star Hedera (HBAR) And Its 11% Climb – A Closer Look The shedding
of less robust positions would ideally set the stage for a more
sustainable bullish advance, as the altcoin continues its journey
to reclaim lost ground. As the altcoin navigates potential
consolidation, investors are watching closely, anticipating the
emergence of a clearer path forward in this dynamic crypto
landscape. (This site’s content should not be construed as
investment advice. Investing involves risk. When you invest, your
capital is subject to risk). Featured image from Ana Silva/Getty
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