Solana is a highly functional open source project based on blockchain technology, a decentralized finance platform. Although the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with its headquarters in Geneva, Switzerland.
On September 1, 2021, SOL opened at $107.44. On September 7, 2021, SOL closed at $173.15. Thus, in the past week, the SOL price has increased by approximately 61.65%. In the last 24 hours, SOL has traded between $133.63-$179.50.
SOL Technical Analysis
This altcoin rallied approximately 450% in two months. According to JP Morgan analysts “crypto market looks bubbly again”. But the good news around the token is the introduction of blockchain 2.0 along with the decrease in the supply of Ethereum tokens, miners will prefer shifting towards Solana. Therefore, it is currently in a speculative trading phase. Bulls are targeting it to be at par with Eth.
At the time of press, SOL is trading at $163.53. And, the price has decreased by approximately 10% from the day’s opening price. Thus, we are witnessing a small dip in the price. To confirm the trend of the price, we will have to wait and see if the price is breaking the immediate support level which is at $149 or not. A short position can be taken if the price breaks down this support level, and sustains around that price level.
On the daily chart, the MACD and signal lines are in the positive zone. Moreover, we can witness a bullish crossover by the signal line over the MACD line. Thus, the overall market momentum is in a bullish phase. Hence, the price may rise further and test the resistance level.
The RSI indicator is at 77.37%. It is constantly taking support from this level. Thus, selling pressures are slowly increasing. We have to wait and watch if buying pressures become strong enough to bring about a bearish trend reversal. We can expect the price to fall for the rest of the day.
In short, when we look at all the oscillators, we can say that the price may continue to fall. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch to see if an intermittent price rise is a corrective action or the beginning of a positive trend.
Day Ahead And Tomorrow
SOL is currently trading below the second Fibonacci pivot point of $179.71. If the bears remain strong till day end, then the price is likely to fall below the FIB support level of $149.71. Once the price breaks down from this level, it will highlight the next support at $128.79. Thus, traders will have an opportunity to go short.
If the buying pressure increases, the price that is trading below the FIB level of $179.71, may rise above the FIB resistance level. Thereafter, we have to wait and watch to get confirmation from the price analysis.