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Solana Price Analysis: Solana prepares to challenge 71.8% FIB retracement at $49

TL;DR Breakdown

  • SOL,ATOM, CKB and DOT which raked overall returns of upto 3.11% 
  • Solana opened the 24-hour trading chart at $41.08
  • Solana Labs, the company behind Solana (SOL) was able to raise $314 million in funding

Solana Price Analysis: General price movement 

Solana (SOL) remains the least affected coin by the ongoing cryptocurrency crash. But is alongside other smart contract coins such as ATOM, CKB and DOT which raked overall returns of upto 3.11% in comparison to a 50% downward correction taking place across majority of cryptocurrencies, including Bitcoin. Presently, Solana price action has failed to break an overhead resistance at $44 on the 5-day chart and is attempting to solidify support near the 61.8% FIB retracement level. This will prevent further declines from $40 and invaldate any bearish momentum.  Solana is currently on a rebound trend from a retracement that occurred on Monday, the trendline is a positive signal for increasing dip investors purchasing who purchased the downtrend. 

SOL slumped into a declining trough in the early trading hours but the bulls came out strongly to defend the $40 support. While they managed to push the price to an intraday high of $42,  the low supply of buyers could not sustain an uptrend to break above that point. Thereby resulting into a falling wedge on the 1-hour chart with a bottom at $41.15.

Solana price movement in the last 24-hours

Solana opened the 24-hour trading chart at $41.08. The price action was trending along an upward movement where it posted a daily high of $42. Later the coin decline to a daily low of $40. The daily range is somewhat narrow, suggesting little to no volatility. 

The bollinger bands are expanding outwards revealing a positive signal for a bullish convergence.  Furthermore, the price has converged below the mean line and leaning towards an uptrend. A movement that might activate a few green candlesticks.

A look at the RSI and the rising moving averages also suggests the bulls are completely taking over control and already moved to the overbought region. 

Source: Tradeview

Solana 4-hour price chart

Buyers seem to be faced by resistance at $43. Overcoming this price hurdle could possibly drive the coin towards the 78.6% retracement level($49.97).  This will invalidate any hopes of correcting below $43 and $40 in the near future. Thereby clearing the road to new all time highs above the current ATH at $58. 

At the time of writing , Solana (SOL) is trading at $42.6 and activated a long bullish candle on the 1-hour chart. 

Source: Tradeview

Solana price analysis conclusion

Solana Labs, the company behind Solana (SOL) was able to raise $314 million in a round of funding. Placing the blockchain startup among the fast-growing companies in decentralized finance. Besides, the blockchain’s digital currency is also performing well across exchanges posting small losses and moderate profits for traders. 

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