- Solana’s bullish surge faces resistance, with potential for new highs but risks of a pullback.
SOL’s technical indicators show cautious optimism, but overcoming resistance at $160 is crucial.
As a seasoned analyst with over two decades of market experience under my belt, I find myself cautiously optimistic about Solana (SOL). The recent surge has been impressive, but it’s important to remember that past performance is not always indicative of future results.
In the last 24 hours, Solana (SOL) has shown signs of improvement, surpassing many other cryptocurrencies. Yet, analysts advise a note of caution, warning that the current upward trend might be a possible “bull trap.”
Crypto analyst CrediBULL Crypto has raised concerns about the current bullish trend of Solana against Bitcoin [BTC].
CrediBULL commented on X (formerly Twitter), stating,
“Overcoming this group of obstacles ahead could lead to reaching fresh highs. However, remember that previous troughs beneath our current position might eventually be washed away, so avoid becoming overly optimistic if we indeed reach these highs.”
It implies that even if an increase (or “breakout”) happens, there could be a chance of a reversal (or “pullback”), potentially resulting in a misleading situation (“fakeout”).
Solana’s market performance and technical indicators
Currently at the moment of composition, the value of Solana stands at $151.34, reflecting a 7.32% upward trend in the last day. However, it’s worth noting that over the course of the last week, Solana has experienced a dip of 16.98%.
The cost has bounced back from nearly hitting $120 and is nearing the midpoint of the Bollinger Bands, currently around $200 and $133. This suggests that the market might experience increased fluctuations in the near future.
In this particular release, the Relative Strength Index (RSI) is currently reading 46.90, implying that SOL is neither in an overbought nor oversold state. At this point, there could be potential for more bullish activity if demand continues to pick up.
Furthermore, the MACD histogram still displays negative values but indicates a tightening trend, suggesting it could soon experience a bullish crossover should the positive trend persist.
These technical indicators suggest a cautious yet possibly bullish outlook for SOL, contingent on overcoming resistance levels around $160.
Recently, there’s been a lot of buzz surrounding the potential for Exchange-Traded Funds (ETFs) based on the Solana platform.
VanEck’s Head of Digital Assets Research, Mathew Sigel, has taken a bullish stance, suggesting that Solana ETFs could materialize sooner than anticipated.
Instead of this optimistic perspective, the traditional strategy of titan BlackRock leans towards viewing such advancement as premature for now.
Market activity and user engagement
Over the last day, I’ve noticed an impressive surge in activity on the Solana network. As per DefiLlama, there were approximately 1.04 million active addresses, and a whopping 32.55 million transactions were logged!
In the Solana network, the combined worth of all assets locked within it currently amounts to approximately $4.808 billion. This represents an 8.61% rise compared to the previous day, suggesting a surge in user interaction and network activity.
Even though there have been ups and downs, the general pattern for active addresses shows a consistent rise. On the other hand, the Total Value Locked (TVL) trend has seen significant shifts, reaching high points towards the end of 2021 and a substantial surge in 2024, demonstrating the ecosystem’s adaptability and resilience.
Realistic or not, here’s SOL’s market cap in BTC’s terms
As per a recent report from AMBCrypto, Solana stands out among the leading cryptocurrencies in terms of market capitalization, often appearing as a highly profitable investment opportunity, or a “golden goose.” This digital asset has experienced remarkable growth since last October, drawing significant interest from investors and traders alike.
Consequently, each dip that came along since then was followed up by a rapid recovery.
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2024-08-08 01:12