Crypto Market Decline - Solana Resurges: Analysis of August 8, 2024

After being dragged down by the overall crypto market downturn, Solana rebounded by more than 45% in three days. Let’s examine the upcoming outlook for SOL’s price.

Solana (SOL) Situation

While Solana reached its last identified resistance at $190, the crypto market experienced selling pressure that halted SOL’s price progression. Within a week, the cryptocurrency registered a 45% drop, bringing its price to $110. It is worth noting that this decline was fueled by poor economic results globally, as well as significant geopolitical tensions. Interestingly, the $110 level corresponded to a point of interest supported by a notable value area, which may explain the buying interest triggered at this level. Indeed, although Solana’s price dipped below the $120 support, it quickly repositioned above this level, which seems encouraging for its future price.

At the time of writing, the price of Solana is trading around $155. The buying interest in the crypto seems persistent. These recent fluctuations have allowed SOL to counter its short-term bearish trend. Regarding the medium to long-term trend of the crypto, it remains bullish although its price is just above its 50 and 200-day moving averages. On the crypto’s momentum side, we can see that it was declining before recently rebounding. This is reflected in Solana’s price itself as well as its oscillators. Naturally, all these elements give rise to renewed optimism about the crypto.

SOL/USD daily price chartThe current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of independent traders active since 2017. You will find Lives, educational content, and mutual support around financial markets in a professional and warm atmosphere.

Hypotheses for Solana (SOL) Price

• If Solana’s price holds above $120, we could anticipate a bullish continuation up to the $170, or even $190 level. The next resistance to consider, if the bullish movement continues, could be $205 – $210. Beyond that, we note Solana’s all-time high at $260. At this point, it would represent an increase of more than 67%.

• If Solana’s price fails to stay above $120, we could foresee a return to the $110 levels. The next support to consider, if the bearish movement continues, would be slightly below $100. Lower still, we note the $86 support. At this stage, it would represent a decrease of about 45%.

Conclusion

Despite recent fluctuations and selling pressures across the entire crypto market, Solana is showing signs of resilience. The medium to long-term bullish trend remains intact, and buyer interest remains strong. These factors contribute to renewed optimism for the crypto. However, it will be crucial to closely observe the price reaction to various key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies may also evolve quickly depending on other more fundamental factors.