Recently, Sol price gained bullish momentum and started rising after rejecting the $19 level. The price broke the resistance level of $21.10 and the candle closed above the resistance level. The move was not sustainable and the price retraced to form a support at $20.40 level. Sol price again started to gain bullish momentum from the support level of $20.40.
The cryptocurrency price needs to break the wick of the previous candle for moving further upward and for confirmation regarding bullish move. Previously, the May 31st candle did not rise above the wick of the previous candle due to the lack of bullish momentum which led to the downfall.
If the price breaks the wick, there is a higher probability for the price to retest the May high of $23.23 and further rise toward the yearly highs. On the other hand, if the Solana price broke below the recent support of $20.40, there is a possibility that price might fall to $19 level which will cause a loss of approximately -6.60%.
Solana Coin Future Prospects
Solana ranks 11th in terms of total value locked. It comes after cronos and pulse clearly shows how bad the situation is. On November 8, the TVL was $10 Billion, at its peak. Now it is around $270 Million.
The only good thing apart from the technicalities of Solana is the active number of users on this network. In May, the number of active users exceeded 300,000 several times and rose to new levels lasy year. However, the increase was temporary and the number has returned in the range of 100K.
Will Sol Price Retest May Highs of $23?
Chaikin money flow score is 0.09 indicating bullish strength in the market. Sol price has started to rise above major EMAs indicating bullish momentum in the price. RSI trades at 55.42 suggesting increasing bullish strength.
The price received support from the 20-day of bollinger bands and is currently headed toward the upper band which resides at $21.75 level. The long/short ratio is 1.12 with 52.9% longs and 47.1% shorts indicating that the sentiment is in favour of bulls.
Conclusion
The current market structure and price action for Solana is bullish. The technical indicators favor the buying side. Traders should be cautious around the $22 psychological level resistance as price might receive rejection.
Technical level
Major support: $20.40 and $19
Major resistance: $23 and $25.40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/04/solana-price-prediction-sol-price-gathers-bullish-momentum/