Solana Faces A Trend Decision, But The Bull Case Prevails

Jake Simmons

2 years ago

2 mins read

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The price of Solana is facing an extremely important trend decision in the 1-day chart. Will the uptrend continue or will it be invalidated? The latter could threaten a drop to the psychologically important $20 level.

A look at the 1-day chart shows that SOL failed in several attempts at the 200-day Exponential Moving Average (EMA) (blue) in mid-April. The indicator has an extremely high significance for the long-term trend.

While Bitcoin and numerous altcoins are already trading above the 200-day EMA, SOL is still stuck below the trend indicator as a consequence of the FTX crash. After falling below the 50-day EMA (orange) on Friday, the SOL price has fought its way back above the level today.

Still, the price is at a key support, an ascending trendline (black) that has proven directional since the December 28, 2022 low at $7.98. A retracement could wipe out the uptrend and trigger another drop to $20. On the other hand, a break above the 200-day EMA currently at $25.13 could turn the chart picture in favor of the bulls.

Solana SOL price — SOL price at pivotal moment, 1-day chart | Source: SOLUSD on TradingView.com

SOL Bull Case Prevails

Solana rose to $25.96 in mid-April, but could not sustain the breakout above the 200-day EMA. In order to start a new attempt towards the north, Solana must break above $22.78 on a daily closing basis. If a stabilization above this resistance level succeeds, the buy side could again target the 200-day EMA.

Only when this major trend line is broken dynamically, the yearly high at $27.13 comes into focus, where the 38.2% Fibonacci level is also located. If the Bitcoin price also rises to a new high for the year at this point, the SOL price could shoot straight up to the $30.44 resistance level.

However, Solana is likely to make a stop here. The next target area after a consolidation would then be the 50% Fibonacci level at around $33.

In a bearish scenario, Solana falls below the black uptrend line and then also breaks the 23.6% Fibonacci retracement at $19.39 on the daily close. In this case, Solana is likely to trend towards the March 10 low near $16.

Bullish News From Solana Ecosystem

Fundamentals also point to a bull case for Solana. Just recently, the Helium (HNT) Network migrated to Solana. In early April, the Render Token (RNDR) community voted to migrate to the high-speed blockchain.

Today, Solana Labs announced an open-source reference implementation for a ChatGPT plugin that will allow users to interact with the SOL network directly from ChatGPT. Once available, ChatGPT plugins will allow users to check their wallet balance, transfer tokens, and purchase NFTs.

Solana also continues to mingle at the top of the NFT space. As one community member points out, four of the top 10 NFT collections are based on the Solana blockchain.

Probably a dead chain

4 solana projects in the top 10 pic.twitter.com/3158xT6XDx

— Paulo (@TycoonPal) April 24, 2023

Featured image from PHD Media, chart from TradingView.com

Jake Simmons

Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.

His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.

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For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.

As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.

In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.

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