Solana has experienced a notable increase of 10.1% over the past week and soared 70.8% this month, shows data from Coingecko. The Relative Strength Index (RSI), a critical momentum indicator, is presently above 60, suggesting strong buying momentum in the market.

However, it’s nearing the overbought zone (above 70), which might imply a potential short-term overvaluation of Solana, possibly leading to a market correction or consolidation phase.

The trajectory of Solana’s bullish trend is further supported by the upward movement of key moving averages – the 50-day Simple Moving Average (SMA) and the 20-day Exponential Moving Average (EMA). Currently, Solana’s trading price is above these averages, reinforcing the bullish market sentiment.

The 50-day SMA, sitting at approximately $42.2, is likely to act as a significant support level. A crucial barrier is observed near the $60 mark on the resistance front, formed by recent price highs.

Continued upward movement, breaking past the $60 resistance with high trading volume, could signal further bullish momentum. The next resistance could be at higher psychological levels or past resistance zones. A breakout above this channel could indicate a strong bullish move.

Solana’s presence in the overbought territory indicates possible upcoming selling pressure as traders might engage in profit-taking, potentially causing a price correction or consolidation. Nonetheless, it’s crucial to note that in strong bullish markets, assets can sustain overbought conditions for extended periods.

A decline below the moving averages, particularly the $42.2 50-day SMA, could suggest a sentiment shift and a potential trend reversal. A further drop below significant support levels might trigger additional declines as stop-loss orders are activated.

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision

Exit mobile version