Solana (SOL) Price Hits Key Resistance, What’s Next?

1 year ago

In the fast-moving crypto world, 1 altcoin made peculiarly precocious waves past week: Solana. Within the apical 100 cryptocurrencies by marketplace cap, the SOL terms recorded the 2nd highest terms summation wrong the past 7 days with 8.5%. And the unexpected surge successful terms for galore has catapulted the SOL token to arguably the astir important absorption astatine the moment: the 200-day exponential moving mean (EMA).

Looking astatine the 1-day chart, the Solana stock terms was capable to interruption supra the 38.2% Fibonacci retracement level astatine $19.71, arsenic predicted successful our past illustration analysis, and subsequently crossed the psychologically important $20.00 mark. While the archetypal effort failed, the Solana bulls celebrated a resounding occurrence successful the 2nd attempt.

However, arsenic predicted successful our past terms analysis, determination was accrued selling unit astatine the 200-day EMA presently astatine $21.97, to which the bulls succumbed. Similar to the past week of June, a consolidation whitethorn present beryllium needed archetypal to reset the method indicators. In mid-June, SOL posted a 26% rally, followed by a 7 time consolidation (bull flag).

A akin script could beryllium imaginable now. A retest of the 38.2% Fibonacci level astatine $19.71 could beryllium connected the table. Remarkably, the unit connected the bulls is immense arsenic the Solana token has failed to interruption the 200-day EMA since April 2022. The astir caller rejection occurred successful April 2023, followed by a 44% crash.

However, the outer circumstances successful the crypto marketplace are antithetic now. Due to the anticipation for a Bitcoin spot ETF, caller beingness has been breathed into the altcoin marketplace arsenic well. Solana, contempt its beardown fundamentals, has been deed peculiarly hard by the FTX play and much precocious the SEC’s declaration of it arsenic a security. Accordingly, a betterment offers plentifulness of upside potential.

If the 200-day EMA breaks, the 50% Fibonacci retracement level (at $23.36) would surely beryllium lone a abbreviated intermediate level earlier the yearly precocious astatine $27.00, which besides coincides with the 61.8% Fibonacci level. A interruption supra this illustration level could unfastened the floodgates for an adjacent much monolithic rally.

However, successful summation to a wide uptrend successful the wide crypto market, this volition surely necessitate a Solana-specific catalyst. For the caller rally, this does not truly look to exist.

Reasons Behind The Recent Solana Price Rally

While determination isn’t a circumstantial identifiable catalyst for Solana’s caller pump, respective factors look to beryllium contributing to its upward trajectory. One operator has been the announcement of partnerships with notable entities. For instance, Coca-Cola successful Serbia collaborated with Solana’s NFT platform, SolSea, to connection constricted variation hoodies accompanied by NFTs during a euphony event.

🥤 Coca-Cola successful Serbia teams up with SolSea NFT level 🌊 for a unsocial collaboration astatine a euphony lawsuit 🎵.
They’re giving distant constricted variation hoodies 🧥 and NFTs 🖼️ to fortunate participants! pic.twitter.com/f4k3idGzvI

— Solana NFTS Notification (@solananftsnews) July 9, 2023

Moreover, Solana’s popularity connected societal media platforms cannot beryllium overlooked, arsenic on-chain information steadfast Santiment noted. The bullish sentiment surrounding Solana has reached caller heights, with Reddit forums buzzing astir the coin’s potential. Market influencers and Reddit traders person apt played a relation successful driving Solana’s terms action, arsenic their power connected marketplace movements is well-documented. This societal media hype has undoubtedly added substance to the fire, propelling SOL’s terms adjacent higher.

Interestingly, Solana faced a regulatory hurdle successful June erstwhile it was threatened with delistings from respective US exchanges owed SEC lawsuits. However, the allegation that SOL is an unregistered information is vehemently denied by the Solana Foundation. Regardless of the eventual outcome, this regulatory uncertainty has formed a shadiness implicit Solana’s future, indicating imaginable challenges ahead.

But contempt these obstacles, Solana has demonstrated resilience. After weathering the tempest caused by the FTX bankruptcy, the level has made an awesome recovery. Its technology, which enables accelerated and reliable decentralized applications and cryptocurrency services, continues to captivate the market. This allure, coupled with the platform’s promising performance, has piqued the involvement of investors and fueled expectations of further gains.

So portion the nonstop catalyst down Solana’s surge remains elusive, the operation of partnerships, societal media buzz, and its resilient exertion paints a representation of a cryptocurrency connected the rise.

Featured representation from iStock, illustration from TradingView.com

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