Solana is seeing a significant boost in price as the crypto market had significant improvements in conditions. As a result, the coin is recovering all of the losses it had during the previous intraday session. At that time, it opened trading at $57.5 but retraced to a low of $53. Although it saw a small recovery, it closed with losses of more than 4%.
Today, SOL kicked off trading at $55 but dropped to the previous day’s low. It rebounded and is currently exchanging $58.
While many may wonder the reason for the sudden revival in price action. A closer look at the market reveals it is none other than the hype around Bitcoin ETF. Standard Chartered Bank voiced its conviction in its approval of such ETFs. This results in an increase in the value of most major cryptocurrencies.
Aside from this, Solana may continue its uptrend in the coming days. One telling factor is the total number of active addresses at this time. As of two days ago, it exceeded 450k; the highest in more than five months. The last time this happened, the asset had a two-week surge.
The cryptocurrency gained almost 10% during that period. If the same happens, solana may be gearing up for a retest of another key resistance. The $70 barrier is the next variable target.
Solana Chart is Silent
Following a bearish divergence on November 19, the Moving Average Convergence Divergence has been largely silent. The 12-day EMA continued its downward as well as the 26-day EMA. With both metrics down and showing no signs of recovery, it is hard to predict how prices may play out.
The Relative Strength Index is another indicator with no clear signals. Currently below 70, the metric dropped below 60. This is a clear indication of an increase in selling volume. A change in the current market conditions may alter the RSI trajectory.
Key Levels to Watch
Vital Support: $55, $52, $40
Vital Resistance: $62, $68, $76
A look at the key levels to watch reveals several critical price marks. With the bullish prospect in view, one of the closest barriers to the current price is $62. A previous time the coin broke through it. However, it is currently struggling below $60 which means that a retest is imminent once SOL breaks out of its channel.
The high for 2023 is $68. The altcoin will flip it before the year runs out. After breaking it, the next critical level on the list is $76. A little far-fetched. Nonetheless, gaining stability above $68 will guarantee a flip of $70.
On the other hand, in the event of worsening trading conditions, SOL may struggle to hold on to key levels. One such is the $55 support. Over the last fourteen days, it tested the mark over five times, mostly breaking it. It is also worth noting that the barrier held out against several attempts as well.
If the highlighted mark fails, the $52 support is another critical level to closely watch. Although there is notable demand concentration around the mark. It is important to bear in mind that once it fails, there are no strong barriers until $40, increasing the chances of retesting the said mark.
