- Solana price saw price action dip below important support at $219.75 last week.
- SOL price saw a quick buy-in from bulls on the dip, pairing back losses above $219.75 during the weekend.
- With buy volume picking up, expect possible new all-time highs for Solana valuation by the end of this week.
Solana (SOL) price saw its value depreciate slightly, slipping below the critical support level at $219.75. The break accelerated the correction but saw bulls quickly stepping in and limiting further losses by defending the monthly support at $185 and helped by the 55-day Simple Moving Average (SMA). With the renewed buy-side pickup in demand, expect a break to the upside and new all-time highs by the end of the week around $280.
Solana price sees bullish uptick making new all-time highs by the end of the week
Solana price came under some selling pressure whilst respecting a top side trend line that had been limiting further upside for most of November. As bulls were forced to the sidelines, bears saw the opportunity to attack an important support level at $219.75, which originated from the beginning of September. After the break below that level downside velocity accelerated , as more shorters joined the party pushing SOL price even lower.
SOL price found support relatively quickly, however, at the monthly pivot at $185, and the 55-day SMA just above at around $182. These two technical elements tilted price action quickly back up towards the historical support level at $219.75 and even beyond with a retest of the top trend line but got rejected. Expect bulls to sit on their hands and try to break the trend line and R1 resistance level near $240.
SOL/USD daily chart
With SOL price currently in the middle of last week's range expect a break to the upside eventually, with the appearance of one or two tailwinds that could appear and help lift sentiment to break monthly R1 resistance at $240. The break of that top trend line would then see accelerated inflow from bulls with demand-side volume exploding and a resulting spike in the price action.. Once bulls can consolidate above $240, expect new all-time highs in the days that follow.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.