Despite the bear pressure, Solana is still on the watchlist

Despite the bear pressure, Solana is still on the watchlist

Despite the bear pressure on altcoins in recent months, the Solana token has continued to fly under the radar. The likes of Ethereum, Cardano and Polkadot also made significant progress.

However, the Solana token a layer-1 blockchain protocol designed to provide high scalability while maintaining decentralization cannot be overlooked. Here are some key points:

  • Solana lost 5% in 24 hours as cryptocurrencies turned red.
  • After weeks of price increases, the fall in crypto tokens is due to profit-taking.
  • Solana token could break out soon, and investors should be interested.

As of press time, the Solana SOL/USD pair has shed 5% in the last 24 hours. You are asking if it’s now time to buy, you’re concerned that the bear market has begun, and you’re considering avoiding it.

We recommend that Solana is on the lookout for more bullish power before a substantial breakout occurs. When this happens, watch the token for the opportunity to invest.

Looking at the cryptocurrency market as a whole, most tokens are still in the red. Although macro worries persist, the bear market follows after some considerable rises. As a result of this, the drops are due to profit taking by primarily short-term traders.

SOL is one of the crypto assets that has seen a break from a major resistance fail. Buyers may return, allowing for a stronger bullish push, after the slide.

The token is down 3.73% in the last 24 hours and is trading at $4.08. Despite this, the weekly chart remains bullish with an ascending triangle pattern forming. This is a continuation pattern that suggests SOL could see more upside if buyers step in again.

After a false breakout, Solana falls back into the consolidation zone

Data Source: Tradingview

The SOL stock has been in a consolidation zone recently, between $32 and $42 on the daily chart. It follows shortly after a false breakout when the token briefly breaks the resistance zone.

We could not confidently rule out the continuation of an upward price movement if SOL holds above the MA. What we do know is that as long as SOL is supported above $32, it remains bullish.

At present, the currency may build up until bulls overcome bears. The cryptocurrency is a buy hold in my opinion. If the price remains supported by MAs, investors might also add positions at current levels. A fall to $32 would provide entry into buy transactions.

Despite the bear pressure, Solana is still on the watchlist. As it has entered the consolidation zone established at between $32 and $42. This happens after the token temporarily breaches the resistance level in a false breakout.

However, if SOL holds above the MA, the breakout may remain valid. What we are certain about is that at the moment, altcoins are not in a good position.

Summary

Despite a false breakout above $42, the bulls are still in control. The token’s price may continue to climb and break out of the consolidation range. The $58 mark is next in line.

Altcoins have been under pressure in the past few sessions as Bitcoin dominance extends its lead. However, there are a few Altcoins that have managed to remain resilient and one of them is Solana. The token has entered a consolidation phase at $32-$42 after a false breakout above $42.

The current market conditions are not favorable for Altcoins but Solana remains on the watchlist. The token could find a bullish momentum to push above the consolidation zone. If it does, the $58 mark is next in line.

The 4-hour chart shows that the MACD is losing momentum which could mean that a breakout is imminent. What is your opinion about Altcoins? Let us know in the comments section below.

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