The Solana price had a significant rally in the past 2 days, gaining about 11% in value. It resulted in a surge to the $28.47 all-time high at the time of writing.
*SOL/USD remains boosted by strong sentiment
*Bulls stay firmly in play and probe through fresh highs
*Collaboration with FTX raises the price of Solana
The street consensus on Solana remains boosted by strong sentiment at an all-time high of $28.47. Solana recovered from the Mar. 26 low of $12.10 level at the moving average (MA 50) and has been in an upward run since then, well into expansionary territory following two straight bullish candles beyond the channel support at $21.60 level indicating expansion. The token wavered in early trading on Wednesday as the market reflected a mild correction in tandem with the overall Altcoin market.
Collaboration With FTX Raises the Price of Solana
A booming market in Solana has raised the price of the token due to its recent collaboration with FTX. The FTX exchange has recently partnered with the Miami-HEAT. The team’s new home will be recognized as the FTX Arena. Serum, a new decentralized derivatives exchange founded by FTX, has chosen Solana as its blockchain. Solana (SOL) has risen 37.52% over the past 7 days and is currently up 8.63% in 24 hrs. The market cap stands at $7.23 billion, with $656 million traded in the past 24 hours.
SOL Daily Chart: Bullish
The daily chart shows that the SOL/USD dropped to the retracement level of $25.88 during the Asian session. Also, the pair formed a red descending candlestick. At the current price, the pair is along the upper side of the channel. The relative strength index (RSI) is also on the lower side of the overbought line. Therefore, the recent rally could be a mild dead cat bounce, meaning that the price could resume the mild downward trend as bears aim for the lower side of the next lower channel at $21.60.
On the contrary, the overall technicals suggest the macro bull trend is intact with a relief rally more likely than lower lows. A countertrend rally to prior day lows of $22.77 will likely be quickly bought by active long traders. SOL/USD buyers may emerge within the $22.77-$21.60 zone (previous resistance-now-support) to contest the price pullback off the all-time high of $28.47.
SOL 4-Hour Chart: Ranging
The 4-hour time frame scenario is not much different from that of the daily chart, however, SOL/USD upside consolidation is more evident at the upside channel. SOL’s immediate advance beneath the $28.47 high has lost some of its lusters. Lower time frame analysis shows that Solana is trading within ascending trendline support, which is located above the moving average (MA 50).
The pair is also forming a higher low. Therefore, it may break lower with the next key target being at the $21.06 level. The SOL/USD pair is only bullish when trading above $21.06, while key resistance levels are found at $28.47 and $30.00. Sellers can test the $18.79 and $16.87 support levels if the SOL/USD pair trades below $21.06 levels.
Resistance Levels: $33.14, $30.00, $28.47
Support Levels: $25.45, $21.06, $18.79
Image Credit: Tradingview
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