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Solana Price Analysis Hints at a Rounded Bottom, Is This a Bullish Sign?

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VOC, Voice of Crypto, SOL

Solana is in the news again.

Last week, news of institutional investors flocking to the cryptocurrency was all over the internet. This happened after the total amount of transactions on its chain surpassed the $100 Million mark.

This week, Solana is up again, pumping 8% over the last 24 hours and gaining 17% over the past day.

This price increase makes Solana one of the highest gainers of the week and even the month so far.

Price predictions for the cryptocurrency have turned green. It broke past the $33 resistance, flashing another indicator for investors to get on board.

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This price increase also comes when Bitcoin’s price has begun to recover, pulling several other altcoins up with it.

In summary, the next resistance Solana investors have to worry about is the $41 mark. If the cryptocurrency price fails to break through this level, a fall back to the closest support level around the $31 – $33 mark is likely.

 Solana Price Analysis

Solana is priced $38.5 at the time of writing. Prices have ranged between $38 to $31 from mid-August until now.

Chart of SOLANA /USDT, showing price range from $31 to $39

Chart of SOL/USDT, showing price range from $31 to $39 | Source: tradingview.com

The price of Solana has formed a rounded bottom over the last day. Rounded bottoms over history have been shown to indicate bullishness and potential breakouts to the upside.

Chart of SOLANA /USDT, showing Rounded Bottom and retest of $39 level

Chart of SOL/USDT, showing Rounded Bottom and retest of $39 level | Source: tradingview.com

If this breakout to the upside occurs, Solana’s price may increase and even test the $49 level.

On the other hand, if Solana fails to break this level, its price may drop again to the $31 zone. If this zone fails to hold, prices will drop to $26.

A bounce to the downside is unlikely. The price action and the fundamental analysis on Solana over the past seven days have shown increased strength on the part of the bulls.

Further Technical Analysis

Rounded bottoms, as many knows, are a sign of bullishness. This pattern could also signal a range.

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This means that Solana’s price could hang around the $36 – $38 level over the next couple of days, testing and retesting the $39 level until either a breakout or a bounce occurs.

Chart of SOLANA /USDT, showing slightly overbought RSI conditions on the 1-hr chart

Chart of SOL/USDT, showing slightly overbought RSI conditions on the 1-hr chart | Source: tradingview.com

Judging by the Relative Strength Index on the 1-hr chart, the price of Solana, the cryptocurrency, is slightly overbought, making it possible that prices take another leg up before a potential correction or retest of the $39 zone.

 

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

 

 

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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