As a seasoned researcher with years of experience navigating the cryptocurrency market, I find myself increasingly intrigued by Solana’s latest price action. Having weathered numerous market storms and witnessed the rise and fall of countless altcoins, I must admit that the resilience displayed by SOL since Monday’s crash is nothing short of impressive.
Since the recent downturn on Monday, Solana’s price has been building a strong argument for bullish momentum. This dip brought the popular smart contracts token back to levels not seen since early July. With increased interest from traders in the coming days, Solana’s new upward trend could potentially continue.
Solana Price Triggers Bullish Move
On Monday, the price of Solana dipped to $109, extending a downward trend evident in its daily chart. This drop occurred after an initial decline from the peak of $193 in July, which coincided with Bitcoin failing to sustain above $70,000.
Surprise withdrawals from the future trading sector negatively impacted the market’s setup, weakening optimistic investors while invigorating those looking to sell. Nevertheless, a swift recovery above $120 sparked interest among traders who capitalized on the decrease, enabling Solana’s price to recover its upward trajectory.
Based on information from Coinglass, the amount of liquidations has dropped dramatically – from over $1 billion in long and short positions on August 5 to just $120 million by August 7. This substantial decrease may indicate that Solana is becoming more stable before potentially surging again towards a price point of $200.
A significant surge in the overall value locked (TVL) from $3.8 billion on August 5 to $4.81 billion suggests growing optimism and significantly boosts the likelihood of Solana’s price reaching $200. Keep in mind, an increase in TVL typically reflects strong investor confidence, which could lead to a rise in price due to increased demand.
Navigating Solana Technical Structure
The Solana price remains above its significant 200-day Exponential Moving Average (EMA), suggesting potential ongoing support for an increase in value. The Relative Strength Index (RSI) is gradually trending upward into the neutral zone, indicating a stronger hold by bullish forces. However, traders might prefer to wait until the RSI crosses above 50 before placing SOL buy orders. Potential price objectives on the upside could be at $160, $180, and $200.
Instead, this Solana price prediction suggests a potential bearish trend might emerge in the daily chart due to an approaching death cross. This occurs when the 20-day Exponential Moving Average (in blue) falls below the 50-day Exponential Moving Average (in red). Traders may find it advantageous to consider shorting SOL, targeting potential support levels at $140, $130, and $120.
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2024-08-07 19:40