Has Solana topped this year or is there some gas left in the tank for the upcoming months? Read more to find out!
This year, Solana (SOL) has become quite a hot project in the crypto space. A few days ago, it made a new all-time high (at a price of $213). At the time of writing, SOL is trading at around $158.
Using both the high and low time frames, this analysis will be done for both SOL/USDT and SOL/BTC pairs.
Before diving into the technical analysis, let's discuss this project briefly.
What Is Solana?
Solana is a web-scale open source blockchain that features fast, secure, and scalable decentralized apps and marketplaces.
The developers of Solana claim that it is the fastest blockchain in the world. The network supports 50,000 transactions per second.
Solana in a 3-Day Time Frame
Solana, the Daily Outlook
The daily chart doesn’t look good for the bulls so far, yet the bullish market structure could still be intact. The price printed a bearish pin bar as a high, which also was the all-time-high.
This is what a bearish or bullish pin bar looks like:
On the chart you see an important zone to hold for the bulls. If the price breaks down from that range, it will fall all the way to $65-$75 before it possibly finds another support level.
However, if bulls successfully defend the marked zone, the bullish momentum will become strong again.
Solana in a Lower Time Frame
On the 4-hour chart, there are multiple support zones, in case the price breaks the current support level.
SOL/BTC on a Daily Chart
Solana outperformed Bitcoin this year by a large rate, 70x to be precise. After a parabolic rise the last month, prices are coming down now. Buying here, after such a rise would be very risky.
SOL/BTC is a bit in no man's land right here.
From the end of April till the middle of August, the price was trapped inside a range. When Solana broke out, prices went up very fast, resulting in this parabolic move.
To stay in a bull modus, the level of 26000 and 28000 sats seems to be the zone to hold for bulls.
Why? A few levels coming together there:
- A former swing high
- A daily demand zone
- The 0.5 Fibonacci retracement of the current run
If you have not taken any entry on Solana yet, it may be better to wait and see if the price indeed reaches that level and the consequent reaction of the market in that zone.
Summarizing Everything for the People in a Rush
- On higher time frames, Solana is in an uptrend. A new all-time-high was printed on the 9th of September.
- The daily chart, in both the USD and the BTC pair, shows signs of a top. That doesn’t have to be “the top”, but a temporary one.
- On lower time frames, the price might roll in the favor of the bears. The bulls need to reclaim some levels to keep the momentum rolling.
Therefore, the price may be a bit more bearish than bullish in the short term, but the future of Solana is definitely bright. It is in a massive uptrend and has outperformed Bitcoin a whole lot this year. That is a very strong uptrend that doesn’t seem to be done yet.