What’s Next For Solana As Bulls Face Rejection At $25?
January 30 2023 - 07:00PM
The Solana price has been trading extremely close to its immediate
price ceiling of $25, and the coin has been struggling below the
level above. SOL price moved smoothly from the $20 mark to $26, but
the bulls got tired at $26, which caused the coin to dip 7.7% on
the daily chart. Over the last week, SOL has noted no considerable
price movement. The technical outlook for SOL indicated that the
price was inclining toward bullish momentum. Demand for the altcoin
was still upbeat despite a downward movement in the buying
strength. Related Reading: Bitcoin Mining Difficulty Touches New
ATH Following 4.68% Adjustment Buyers still outnumber sellers on
the chart. If demand remains consistently in the positive zone, the
SOL might end up challenging the $26 mark. As Bitcoin travels into
the $24,000 zone, altcoins can be expected to move upward. If
buying pressure notes a downtick further, the coin can fall in
value before it jumps back above the $26 mark. The market
capitalization of SOL increased, which meant that demand was on the
upside for Solana. Solana Price Analysis: One-Day Chart SOL was
trading at $23 at press time. The coin moved to the $26 mark, but
the bulls gave up then. Since then, SOL has dropped below the $25
mark. Solana has to flip the resistance level into a support level;
failing to do so, Solana might fall to the $20 level, as that was
the altcoin’s nearest support line. Overhead resistance for the
coin stood at $26, allowing it to move close to $28. The amount of
Solana traded in the last session was red, which indicated that the
coin noted a fall in buying strength. Technical Analysis SOL has
been in the overbought zone for some time now, and buyers continue
to dominate the market despite a slight fall on the daily chart.
The Relative Strength Index was at 60, and despite the downtick,
the indicator displayed that buyers exceeded sellers in the market.
On that same note, the Solana price moved above the 20-Simple
Moving Average line (SMA), which meant that buyers were driving the
price momentum in the market. SOL was also above the 50-SMA
(yellow) line, indicating that the altcoin was still bullish.
Demand and accumulation remained high on the chart, and the Chaikin
Money Flow suggested the same. Chaikin Money Flow reads the capital
inflows and outflows at a given time; the indicator was above the
half-line, which meant that capital inflows were more than capital
outflows. Related Reading: Dogecoin: Can Elon Musk’s McDonald’s
Offer Give DOGE A ‘Happy’ Price? The Moving Average Convergence
Divergence (MACD) indicates the price momentum and trend reversals.
MACD formed red signals tied to sell signals for the altcoin.
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