Solana (SOL) Retests Multi-Month Trend Line, Bulls Prevailing Again?

Jake Simmons

2 years ago

2 mins read

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Sunday night’s crypto market-wide correction has once again sent the Solana price down to a level that is crucial for price action in the coming weeks. SOL has been forming an ascending trend line on the 1-day chart since late December last year, which could lead the price back into bullish territory, as NewsBTC reported.

Already in the last few days, the Solana price had tested the trend line (black) before a decent bounce to the upside took place. However, yesterday’s price action pushed SOL back to the trendline. However, as the 4-hour chart shows, SOL has shown strength and remained above the trendline.

Solana price SOL USD — Solana price, 4-hour chart | Source: SOLUSD on TradingView.com

The retracement has also caused Solana’s Relative Strength Index (RSI) to reset on the 4-hour chart. With the RSI near the overbought zone at 68, there has now been a healthy pullback to 41. Thus, the 4-hour chart continues to look bullish.

A look at the 1-hour chart continues to show a similarly strong picture. For SOL’s bulls, today is all about closing above the $22 level to stay above the trendline. If successful, the bulls can once again tackle resistance at $22.78 before the big challenge: the 200-day Exponential Moving Average (EMA) (blue).

Solana SOL USD — Solana holds above the trend line, 1-day chart | Source: SOLUSD on TradingView.com

Solana already fell below the “bull line” on April 8, 2022, which technically means it is still in bear territory. The collapse of FTX and the entanglements are certainly one reason why SOL is still undervalued compared to other altcoins.

While numerous altcoins are already trading above the 200-day EMA, the indicator remains the most important target for Solana. However, this will likely require a renewed upswing in the overall crypto market, especially in the leading cryptocurrency Bitcoin.

Once the 200-day EMA falls, Solana’s yearly high at $27.13 comes into focus, where the 38.2% Fibonacci level is also located. Subsequent Fibonacci levels would be $33.06 (50% Fibonacci), $39.14 (61.8%Fibonacci), and $47.81 (78.6% Fibonacci).

Remarkably, Solana’s current strength can also be seen in the SOL/BTC chart (1-day chart). SOL is on the verge of breaking out of a descending parallel channel that has defined Solana’s trend since mid-January.

Bullish News For Solana

Last Friday, payments giant Mastercard announced that it is working with a handful of layer 1 projects to create common standards. Among them is Solana. In addition, Mastercard has selected the blockchains: Ethereum, Aptos, Polygon and Avalanche. The Solana Foundation commented via Twitter:

The Solana Foundation is excited to work with Mastercard on tools to verify trusted interactions and help secure interactions between web2 and web3 apps. This is a positive step forward in enabling trust in trustless environments for consumers, businesses, and the greater.

At #Consensus23, we announced how we are instilling trust in the blockchain ecosystem through Mastercard Crypto Credential. With crypto wallet providers @Bit2Me_Global, @LiriumAG , @MercadoBitcoin and @UpholdInc and public blockchain network organizations @AptosLabs,… pic.twitter.com/P33mtDVAas

— Mastercard News (@MastercardNews) April 28, 2023

Featured image from Exodus Wallet, charts 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.

Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.

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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