Though the coin witnessed a steep 20% price decline that sent it hurtling toward the $115 mark, its ability to withstand pressure at key support levels has generated talk about its potential to rise in the cryptocurrency market.
The asset’s recovery was aided by the price dip that pushed SOL in the direction of the 100-day EMA, which is represented by the orange line on the chart. This phenomenon highlights the significance of EMAs as gauges of market mood. The next support is expected at the 200 EMA, or about $110, and the historical $100 level, respectively, therefore SOL’s response to these levels may indicate its next course of action.
One thing to notice about Solana’s chart is the double-top pattern that developed before the most recent correction. The recent price movement of SOL has confirmed the possibility of an upward reversal, which is indicated by this traditional technical structure. The $115 level is significant because it mimics the peaks of this formation and is now functioning as a strong barrier, as indicated by the double-top pattern.
However, we can get a little bullish if SOL settles above the 200 EMA support. The pessimistic mood that resulted from the double-top pattern may be refuted if SOL is able to hold above $110 and move toward a break above the $115 resistance, potentially charting a path back toward higher prices.
Despite its difficulties, Chris Burniske believes that Solana has a lot of meme currencies that offer very high volatility, which might make it a strong bullish case once more.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.