Since the beginning of April, Solana (SOL) has not closed a single daily candlestick below the blue box, which is located between $121 and $128. This indicates strong support and that many investors have bought at this price level. Since around August 29, when SOL lost the 200 daily EMA, the price tried several times to regain it, but failed – until yesterday. Now SOL has broken both the 200 and 50 EMA, which is considered very bullish.
A retest of the 50 or 200 EMA is not out of the question as all indicators are overheated. However, it seems that SOL is unfazed by this and continues to push higher. According to VPVR, there is little resistance at the current price level as there has not been much volume traded there, which could make it easier for the price to continue to move higher. The next resistance for SOL is at $151.25 on the yellow line. If this is broken, the next resistance can be expected at $163.41.
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It would be ideal if the 50 and 200 EMAs were re-tested to attract new investors and consolidate the uptrend.
How long will the uptrend in SOL last?
On the 4-hour chart, the RSI is showing an overbought condition at 80 points, which could indicate a minor correction or consolidation to allow a cooling off. The MACD also continues to show positive momentum, which could also favor a cooling off. The next resistance is at the yellow line at $152.46 before the price heads towards $160.
A retest of the 800 or 200 EMA as shown in the chart should be awaited as it would be unhealthy for the price to continue to rise without a support. If a sudden sell-off occurs, SOL could fall as quickly as it rose.
About the author
Bastian Keller (Bitbull) has been operating independently in the Forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading“, with more than 60,000 subscribers. Bitbull also has the platform TradeMania was launched to make it easier for beginners to get started in crypto trading.
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