The fame of the Solana platform was recently re-emphasized when Coinbase decided to list Solana-based tokens, Bonfida and Orca. The optimistic outlook for the Solana platform could brighten as even Bank of America noted Solana’s priority on scalability, which could contribute to its growth as a smoothing layer. On the charts, Solana’s native token SOL has been battling in a downtrend for the past two months. Could there be some relief in the coming days and can SOL break the downtrend?
SOL-12H
Source: SOL/USDT on TradingView
The downtrend started in early December when SOL broke its previous lows, and over the course of the month, SOL was unable to move beyond the $204 level, confirming a downtrend. In the past two weeks, SOL has made quite a jump from the lows of $83.6.
Therefore, we have a longer-term downtrend in which a short-term uptrend occurred. The fresh lower high at $110.19 (wick to $113.66) marked an area where SOL should climb higher and test again as support to show evidence of strong (short-term) bullishness.
If such a scenario unfolds, the SOL can be expected to rise to $130 quite easily given the low trading volume in the $110-$130 on its way down. But between the $130 – $150 area is a strong resistance.
rode
Source: SOL/USDT on TradingView
The VPVR, as already noted, showed that the $110-$130 area could be crossed quickly due to a lack of trading volume. However, it was not yet clear whether last week’s gains could be extended to push the SOL that high.
The RSI climbed above neutral 50 while the Awesome Oscillator also appeared to be on the zero line, about to cross over to the upside. Still, the OBV recorded lower spikes indicating that while demand was present, it may not have been significant enough to outweigh sales volume.
Inference
A move above USD 113 and a bullish retest of this level could see the SOL rise towards USD 130. In that area, the strength of the long-term trend could exert significant downward pressure on prices. It could also provide massive liquidity for the major market participants to tap into, before the price rolls back lower. Therefore, $113 and $130 remain resistances to watch while the $95 mark could provide support in the near term.
This post Solana was rejected on this front, but could it break past on a second try?
was published first on https://ambcrypto.com/solana-was-rejected-in-this-area-but-could-it-break-past-on-a-second-try/
