- Solana price is currently testing the $216 support level in hopes of triggering an 88% rally.
- SOL becomes the third cryptocurrency after Bitcoin and Ethereum to be listed on the Bloomberg Terminal.
- A breakdown of the $200 psychological barrier will invalidate the bullish thesis.
Solana price is currently hovering around a crucial demand zone that needs to hold for an upswing to emerge. Breaching this barrier will reduce the probability and also open SOL up for a potential correction.
Bloomberg welcomes SOL after BTC and ETH
Solana price can now be tracked on the Bloomberg Terminal via the “Bloomberg Galaxy Solana Index,” making it the third cryptocurrency after Bitcoin and Ethereum to have this feature. Tim Grant, the Head of Europe at Galaxy Digital, announced that this development was a result of the collaboration with Galaxy Digital and Bloomberg LP.
Grant stated,
This marks our fifth index in the Bloomberg Galaxy family of indices which are... Bloomberg Galaxy Bitcoin Index (BBG TICKER: BTC), Bloomberg Galaxy Ethereum Index (BBG TICKER: ETH), Bloomberg Galaxy Crypto Index (BBG TICKER: BGCI), Bloomberg Galaxy DeFi Index (BBG Ticker: DEFI), Bloomberg Galaxy Solana Index (BBG Ticker: SOL).
This institutional-grade index for Solana will now be available globally to 400,000 users, and the pricing source will allow Solana-based products to be launched in jurisdictions that allow it.
Solana price contemplates directional bias
Solana price set up two rounded-bottom structures between September 9 and November 2. The larger structure is referred as the cup, while the smaller one that follows it is known as the handle. The peaks of these structures can be connected using a trend line to form a horizontal resistance barrier at $216.
The cup-and-handle pattern forecasts an 88% upswing to $407, determined by adding the distance between the cup’s swing low and the horizontal supply barrier at $216.
While Solana price broke out on November 2 and rallied 20%, the recent downswing has undone the gains.
Currently, SOL is hovering around $216 and inside a demand zone, extending from $208 to $218. Solana price needs to hold above this area to have the highest probability of an upswing.
In some cases, Solana price could extend its climb and retest the 161.8% Fibonacci extension level at $430.
SOL/USDT 1-day chart
However, a failure to do so will result in a retest of the $204 support level. If SOL produces a lower low below the $200 psychological level, it will invalidate the cup-and-handle bullish thesis. In this case, SOL could head to the $178 support level, where the buyers could give the upswing another go.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.