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.
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 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