Solana is making strong moves and has gained nearly 5% in the last 24 hours with the SOL price currently trading close to $20. With today’s move, the SOL price has extended its weekly gains to 10%.
Solana exhibited a bearish market structure on the daily chart, which became apparent on August 5 when it slipped below the recent higher low of $22.73. Subsequently, in mid-August, SOL experienced a significant downward move, with a 23.8% decline over 8 days, marking its lowest point.
The Fibonacci retracement levels pointed to the 61.8% level at $20.18. As of the current situation, the downtrend and market structure remained intact. The Relative Strength Index (RSI) resided below the neutral 50, emphasizing the bearish momentum. Holding the line at the 78.6% retracement level, priced at $16.94, is essential for the bulls.
A test of this level could present a buying opportunity, with potential targets including the local highs at $25.5, $29, and an ambitious target of $32.
Will the Solana Price Rally Continue Beyond $20?
Popular crypto strategist Altcoin Sherpa stated that the euphoria could be short-lived. Addressing some caution for any fresh entry into Solana, altcoin Sherpa stated:
“It’s nice to see some recovery, but every rally in the last few weeks has resulted in just a lower high. Regardless, if you’re in it for an investment, it can’t be bad to accumulate sub-$20.”
Altcoin Sherpa has identified the $14 level as a potential support zone for Solana. However, it’s important to highlight a critical factor that may have a short-term impact on Solana’s trajectory. This factor revolves around the impending liquidation of a substantial Solana reserve held by the troubled cryptocurrency exchange FTX, which amounts to an astonishing $1.16 billion. The results of this liquidation process have the potential to significantly influence the price stability of Solana.
It will be interesting to see how SOL moves from here onwards. The SOL price is still trading at a 90% discount from its all-time high in 2021.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.