TL;DR Breakdown
- Solana price analysis is bullish today.
- SOL/USD is currently trading at $176.52.
- Bullish momentum returned overnight.
The analysis of Solana’s price is bullish today, and we anticipate another attempt to rise above the $168 support level today. In all likelihood, SOL/USD will try to make a higher high, resulting in a reversal from the previous broad downward swing.
As predicted, the daily chart shows that Solana resistance was held on Monday. The bearish momentum was lost overnight, and since then, it appears that the bulls have retaken control.
The RSI indicator arrived at a new high, which appears to have triggered a further bullish momentum on the hourly time frame. Since then, the price has been increasing every hour, and we expect this bullish trendline to continue today. Watch out for a breakout from the green triangle on Solana’s daily chart; it could be a strong signal that a recovery is starting.
The breakout from the triangular bullish pattern could result in a surge towards $180, as indicated by the daily chart. Watch out for resistance along this line and at $184, which would be normal if we consider historical price action.
It’s worth noting that the RSI indicator has a history of warning users when they’re on the verge of experiencing a big swing in momentum. Keep an eye on it since it may correctly predict future momentum swings (it appears to be doing so right now). If the bulls manage to increase their efforts and drive SOL/USD above $184, we will likely see another attempt at breaking out beyond $200 soon after.
SOL/USD 4-hour chart: SOL ready to push higher?
On the 4-hour chart, we can see that the Solana price is rising again, which may lead to another test of $175 local resistance.
Solana price plummeted considerably at the start of this week. Following a strong increase, SOL/USD peaked at $205 on the 27th of December, resulting in an accelerated selloff below $190.
The price fell from $200 to about $150 on Monday. The Bitcoin price plummeted even further on Tuesday, reaching as low as $140 before finding support at that level. With a test of upside toward $178, the Solana responded to $175 with a challenge of upside toward $178. Yesterday’s selloff continued, with the $168 obstacle again preventing additional losses.
SOL/USD is likely to test the $176 resistance before continuing further higher due to that bounce from support. The potential for a reversal from this move (and the bullish breakout pattern) has increased substantially, and it could be wise to buy in at current levels if one believes prices will continue to increase.
The hourly chart shows that Solana price may be creating an ascending triangle in that time frame. A breakout could lead to another attempt to break out beyond $200 (implying another push toward previous highs around $212).
As a result, the Solana price action has found significant support. Bulls will undoubtedly retrace the severe drop seen early in the week as they prepare to defend.
Solana Price Analysis: Conclusion
Solana price analysis is bullish today as the $168 support prevented more downside again, sending the market higher. Likely, the RSI indicator indicates that SOL/USD is now ready to set a higher high to begin retracing the sharp loss seen earlier this week.
isclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Source: https://www.cryptopolitan.com/solana-price-analysis-2022-01-02/