Solana is down more than 50% from its all-time high recorded in November.
SOL appears to be trading in oversold territory, suggesting a rally may be incoming.
A spike in upward pressure could see SOL rise toward $200.
Share this article
Multiple buy signals have appeared for Solana. If buy orders increase, SOL could have a significant relief rally on the horizon.
Solana Presents Buy Signals
Solana appears to be gearing up for a major bullish impulse despite the recent downturn in the crypto and global markets.
After putting in a major rally throughout most of 2021, SOL has had a rocky few weeks. It’s currently trading around $119, down more than 50% from its all-time high of $259 recorded on Nov. 6.
The high-throughput blockchain’s SOL currency appears to be trading in oversold territory, hinting that a local bottom could be about to form. The optimistic outlook is forecasted by the Tom DeMark (TD) Sequential indicator as it is currently presenting buy signals on Solana’s three-day and weekly charts. The bullish formations developed as red 9 candlesticks, which is indicative of a one to four candlesticks upswing in either time frame or the beginning of a new uptrend.
A spike in buying pressure around the current price levels could help validate the thesis presented by the TD Sequential indicator. Under such circumstances, Solana could rise toward its 50-three-day moving average at $180. Breaching this critical area of resistance could push SOL higher as the next important supply wall sits at around $200.
It is worth noting, however, that Solana could dip lower before achieving its upside potential. The 100-three-day moving average and the 50-week moving average are currently hovering around $100, indicating that this is the most stable demand barrier underneath SOL. Any downswing toward this support zone could encourage sidelined investors to re-enter into the market and act as a catalyst for an upward movement.
Still, it remains to be seen whether the $100 support will hold. A decisive candlestick close above this level could spell trouble, invalidating the bullish outlook. Solana could then resume its downtrend toward $82 or even $66.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Metaplex Raises $46M to Grow Solana NFT Ecosystem
The Metaplex Foundation has raised $46 million from investors to expand support for NFT, gaming, and Metaverse applications. Metaplex Completes Raise Solana’s NFT ecosystem is about to get a boost…
DeFi Data Network Unmarshal Doubles Down on Solana, Signs Key Advisor
Since its launch in 2021, Unmarshal has continued to look for ways to improve its ecosystem to provide the best services to existing blockchains. Now in 2022, the DeFi network…
Solrise Hires TradFi Exec To Bring Solana DeFi To Institutional Player…
Solrise is proud to announce the expansion of its team through hiring Joseph Edwards who will join as Head of Financial Strategy. The former Head of Research of crypto brokerage…
Audience Survey Win A $360 Subscription To Pro BTC Trader
Answer the questions below and share your email for a chance to win. Every month, 5 people will receive a $360 1-year subscription to Pro BTC Trader. Free. We’re doing…