Price action remains murky for Solana (SOL) as the bulls struggle to get the rally back on track.
With a current trading price of $21.73 (24h change of -0.51%), Solana continues to struggle to maintain the rally structure – but judgment day is drawing near.
Like most risk-on assets, SOL has posted a steady rally in the new year. Bulls have been riding high on positive macro sentiment throughout January.
Indeed, a bullish bitcoin (BTC) rally – fueled by a rise in the S&P 500 and dovish sentiment from Powell – has ignited the markets.
Is Solana (SOL) rally running out of momentum?
But some fear the SOL rally may be running out of steam.
Early February saw weeks of hammering against key resistance at $22.50.
The resulting retracement has been a messy 10-day affair. On February 9th, Solana price severely broke below the 200 day MA.
The rally chart structure remains in place as the bulls hurriedly found support and found local footing at $20.00. Still, SOL is not out of danger. Stuck in a consolidation pattern between the 200 day MA and a very supportive lower trend line.
This dangerous pendant arrangement is being forced. To resume the rally, the local resistance needs to be broken above the 200-day MA.
A break from here would be disastrous for the rally structure. The prices are likely to decline towards the nearest support at $16.00.
But a break above the 200-day MA will resume the test of the rally at $22.50. If this range is reached, the price will move up to around $26.00.
Leading Solana (SOL) Indicator
The RSI 14 does little to illuminate the current price action. On-the-Fence reading at 55 – Minor bearish divergence reflects cautious buying pressure.
The MACD on the other hand is sitting at 0.139 – a minor bullish divergence shows the bulls moving to test the local resistance from the 200 Day MA.
Overall, judgment day is arriving for SOL’s New Year’s rally.
If all goes well, a potential upside is $26.00 (+18.8%). While the downside risk is more significant at $16.00 (-26.8%).
This yields a Solana Price Analysis risk:reward ratio of 0.7 – a risky and unattractive entry.
Is now a good time to buy SOL?
While SOL is due for a substantial rally at some point in the future, it may not come for several months. So if you are looking for SOL as well as other high-potential crypto projects, we review the top 15 cryptocurrencies for 2023, as analyzed. crypto news Industry Talk Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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