Last week, the price of Solana experienced a significant drop as Bitcoin fell to $61,000 due to escalating geopolitical conflicts between Israel and Iran. In consequence, investments considered risky, including Solana, saw declines. The value of SOL dropped to $120 on Saturday.
The intense demand to sell and market volatility continued into the new week, keeping SOL trapped between its support level at $120 and a strong resistance point also at $120.
With a market value of $62 billion and placing fifth amongst cryptocurrencies, the competitive smart contracts token bounced back to $141 by Thursday. However, it hinted at a potential trend reversal.
Solana Price Ignites Bullish Momentum
Traders are eagerly jumping back into cryptocurrency trading with a significant uptick in volume, reaching $5 billion on CoinMarketCap – a 4% rise. The sudden popularity of SOL buy orders is reflective of its 7.25% price hike, boosted by the consistent upward trendline’s backing.
Over the next few days, Solana’s price behavior could be crucial. If things go well, $200 might become a realistic target. Alternatively, investors may need to brace for a period of sideways trading between $120 and $150.
The MACD technical indicator, which includes moving averages, suggests a challenging road to recovery based on its daily chart readings, implying a sell signal.
If the Relative Strength Index (RSI) continues to rise from almost oversold levels, Solana’s price may pick up speed and narrow the difference between its current value and $200.
Based on the chart, Solana’s current position under the 50-day and 20-day Exponential Moving Averages (represented by the red and blue lines) indicates that buyers might face some challenges right now.
Another interpretation is that the Solana price needs more support to strongly uphold the prediction of reaching $200 in the long term.
Support for the price at $140 is uncertain, and if it drops below the trendline, additional losses are possible. Thus, investors should consider implementing dollar cost averaging (DCA) to minimize potential losses at this critical juncture. Keep in mind that vital support levels include $130, $120, and the 200-day moving average (represented by the purple line at $107).
In the world of decentralized finance (DeFi) on Solana, there’s been a downturn in the total value locked (TVL). As reported by monitoring sites such as Defi Llama, the maximum TVL reached, which is the amount of SOL held in various smart contracts within the ecosystem, was $4.89 billion. However, this figure has since decreased to $3.55 billion.
A decrease in TVL (Total Value Locked) on Solana indicates that investors have become less optimistic about its future worth, causing them to withdraw their funds from staking agreements in preparation for potential sales. This withdrawal contributes to the current price decline down to $120.
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2024-04-18 20:15