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Solana Price Analysis – SOL Sees Strong 18% Surge As Bulls Attempt To Break Strong $44 Resistance

Key highlights:

  • Solana surged by a strong 17.5% today as the cryptocurrency heads above $40.
  • It is currently attempting to break resistance at a bearish .618 Fib near $44.
  • Against BTC, SOL is also surging and is almost at the previous ATH around ₿0.0013.

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Solana price $43,28
Key SOL resistance levels $44, $45, $48, $49.90, $52
Key SOL support levels $40, $38, $36, $34.40, $31.50

*Price at the time of writing

While the overall market seems relatively stagnant, SOL managed to surge by a strong 17.5% today as the cryptocurrency heads above the $40 level and is currently testing resistance near $44 – provided by a bearish .618 Fibonacci Retracement level.

SOL has been gaining some serious traction over the past couple of months and surged to an ATH price of $58 in May. After the price drop back into the 200-day MA around $20, SOL has rebounded higher and is now above the 50-day MA to trade near $40.

Founded in 2017 by Anatoly Yakovenko, Solana is a decentralized blockchain with a very high throughput that launched its Mainnet in Q3 2019. It is a highly scalable smart contract blockchain that uses proof of history to verify the ordering and passage of time between events.

The coin had an ICO in March 2020 in which it managed to raise a total of around $25.6 million.

Backed by Sam Bankman-Fried, the CEO of the FTX exchange, Solana is attempting to raise another $450 million in a funding round. Initially, the funding round was set to close in March, but the project managed to find big capital interested in the project and ended up extending the funding round. It is rumored that the funds would be used to bring in developers to deploy their dApps on top of the Solana blockchain itself. Being technically superior to Etheruem, Solana can offer up to 50K TPS, significantly higher than the 21 transactions per second that Ethereum can offer.

Solana is now ranked in the 11th position as it currently holds an $11.82 billion market cap value.

Let us continue to take a look at the markets and see where they might be heading.

Solana Price Analysis

What has been going on?

Taking a look at the daily chart above, we can see that SOL had set an ATH price around $58 in May, but the market capitulation caused the price to roll over and drop rather quickly. SOL continued to fall during the market-wide sell-off, which caused it to spike beneath $20 as it hit the 200-day MA level.

More specifically, SOL found support at $24.42 (.618 Fib Retracement) and rebounded from there in the final week of May. Since the rebound, SOL has pushed higher and managed to break above the 50-day MA level at the start of June as it pushed above $35.

Over this past week, SOL continued to edge higher until reaching the resistance at $44, which is provided by a bearish .618 Fib Retracement measured from the May high to low.

Solana price short term prediction: Bullish

SOL is considered strongly bullish right now. The cryptocurrency would have to drop beneath $30 (100-day MA) to be in danger of turning neutral. It would have to continue beneath $22 (200-day EMA) to turn bearish in the short term.

If the sellers push lower, the first level of support lies at $40. This is followed by $38 (.236 Fib Retracement), $36, $34.40 (.382 Fib Retracement), $31.50 (.5 Fib Retracement), and $28.55 (.618 Fib Retracement).

Where Is The Resistance Toward The Upside?

On the other side, the first level of strong resistance is expected at $44 (bearish .618 Fib Retracement). This is followed by resistance at $48, $48.90 (bearish .786 Fib Retracement), $52, and $53.80 (bearish .886 Fib Retracement).

Additional resitance then lies at $56, $58 (ATH), $60, and $61.90 (1.414 Fib Extension).

What has been going on?

Against Bitcoin, SOL set an ATH at around ₿0.0013 in May as it hit resistance at a 1.414 Fib Extension level. From there, it headed lower during the May sell-off until support was found at ₿0.0007. It has since rebounded from this support and started to surge higher over the past week of trading. 

Over the past 24-hours, SOL managed to break resistance at ₿0.0012 and has pushed higher to reach near ₿0.0013 as it aims to set new ATHs in the coming days.

Solana price short term prediction: Bullish

SOL is most certainly bullish against Bitcoin. The cryptocurrency would need to fall beneath ₿0.0008 to turn neutral and would need to continue further beneath ₿0.0005 (200-day MA) to be in danger of turning bearish in the short term.

If the sellers do push lower, the first level of support is expected at ₿0.0012. This is followed by support at ₿0.00113 (.236 Fib Retracement), ₿0.0011, and ₿0.001 (20-day MA).

If the bears break beneath ₿0.001, additional support lies at ₿0.000087 (.618 Fib Retracement & 50-day MA), ₿0.0008, ₿0.000755 (.786 Fib Retracement), and ₿0.0007 (200-day MA).

Where Is The Resistance Toward The Upside?

On the other side, the first level of resistance lies at the ATH of ₿0.0013 (1.414 Fib Extension). Above this, resistance lies at ₿0.0014, ₿0.00146 (1.618 Fib Extension), ₿0.00152 (1.272 Fib Extnesion – purple), ₿0.00161 (1.414 Fib Extension – purple), and ₿0.00174 (1.618 FIb Extension – purple).

Keep up to date with the latest ETH price predictions here.

Previous Technical Analysis

At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent technical analysis articles:

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