Jonathan Morgan
Independent Analyst
- Solana price was rejected near the $110 resistance zone but quickly recovered to test it again.
- Some short sellers may be trapped if bulls can rally SOL into the prior bull flag.
- Downside pressure remains.
Solana price action has had its whipsaws this week, more so than most high market cap cryptocurrencies. However, buyers appear undeterred this week as they make another run at the $110 resistance level despite some negative news and fundamentals.
Solana price bulls look for a breakout above $110 to test $125
Solana price action on Wednesday and Thursday looked like a very strong probability of a bearish continuation occurring. There were many good reasons to bet on that happening for bulls and bears who thought that Solana would dip lower. One of the primary reasons was the hidden bearish divergence while SOL was trading against a critical resistance level.
Many new short positions were added on derivatives exchanges which are now likely feeling the squeeze as Solana has returned to that critical $110 zone. If bulls wish to position Solana to initiate a new bull run, then a daily close at or above $120 is necessary.
A close above $120 means that Solana price closed above the Kijun-Sen, 38.2% Fibonacci retracement, prior 100% Fibonacci expansion, and the bottom trendline of a former bull flag. Additionally, a close at $120 would invalidate the current hidden bearish divergence that may continue to weigh on Solana price.
SOL/USDT Daily Ichimoku Kinko Hyo Chart
If bulls fail to push Solana to $120, the recent retest of $110 could be a bull trap and the final retest before a push toward the $75 zone begins.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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.