- Solana price saw bulls being rejected from more upside at $207.
- SOL price tanked throughout the week, looking for support.
- The best outcome would be for SOL to test solid support at $146, which would set Solana ready for a bull run in 2022.
Solana (SOL) hit a curb on its way to $221 by getting rejected at the 55-day Simple Moving Average (SMA) at $207. Since then, SOL price action has faded to the downside in looking for support and investors to offer an opportunity to get long for a solid trend. As Solana looks heavy, expect some further downturn with investors awaiting to pick up at $146 and gearing up for a massive blow-out towards new all-time highs in early 2022.
SOL price needs to give a little to gain a lot
Solana price got capped by the 55-day SMA this week around $207. Target was set for $221 and new all-time highs after that, but the rally looks to be stalled for now. As SOL price started to fade since then, it looks like investors are a bit puzzled on where to get in precisely as the current levels around $160-$180 are not offering any solid entry levels to get in and manage the trade with a sound stop loss and good risk-return ratio. The best would be for Solana price action to tank a little further and get firm support at $146.
SOL price already bounced off that $146 level three weeks ago and acted as an entry and launching platform for the rally that followed thereafter, reclaiming the $200 level. With the upswing and the start of the new year, investors would be more than happy to join the entry and see a more solid and well-equipped bull run emerging towards $221 at the least. This means that Solana needs to give way 16% of value to gain at least 51% towards $221, or even 83% if SOL makes new all-time highs.
SOL/USD daily chart
The start of 2022 could well be a more difficult one as the pandemic is not over yet, and a few geopolitical elements could take a wrong turn of events at the beginning of the year. That would see more downside pressure on cryptocurrencies overall as investors would want to park their money instead in safe havens, away from risk assets. In that case, expect SOL price to tank even further towards $125, where the 200-day SMA will be ready to catch and support any falling price action in sight as the 200-day SMA has never been firmly broken to the downside in the existence of Solana.
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.