- SOL rice is up over 250% in the last month
- SOL Price was awarded by the 15 MA. supports
- A bearish divergence can jeopardize this rally
Time to Book or Hold Profits?
The Solana price was one of the strongest coins in the top 100 last month. Prices rose from the July 20th low of $ 22 to nearly $ 95 in just one month. This rally was triggered when BTC and ETH broke out of their multi-month trend lines. Many have wondered what is behind this explosive run on the SOL price, as the majority of coins have not yet broken their previous all-time highs. Just last week, a digital asset fund announced that it would offer institutional investors a registered Solana fund. Just a day later, the data feeder Pyth Network announced it was going live on Solana’s proof-of-stake blockchain. These two announcements certainly helped SOL develop a new ATH.
Since the SOL price hit its low of $ 22, the bulls have relentlessly pushed the price on an unstoppable bull trend. After SOL hit a new ATH a week ago, the price returned to a bullish flag and quickly erupted to the upside. Since then, the price has broken through every level of resistance and is printing new all-time highs at the time of writing.
Based on the Fibonacci expansion levels, SOL could be heading towards the $ 100 mark. If price declines at this level, expect a pullback to the previous resistance of $ 88. During the past 10 days, SOL has formed a potentially ascending wedge formation. A break in one of the trend lines will send the price parabolically in that direction.
Solana price analysis: SOL / USDT 1-day chart
In the last 35 days the price was supported by the 15 MA. This MA kept the SOL price up every time a retrace occurred. Based on this, we can use the 15MA as a measure of whether or not SOL is bullish. Falling below this MA will bring SOL back into the $ 60 / $ 70 range. At the time of writing, we can see that SOL has minor support at $ 88 and $ 77. These two marks should hold SOL in the event of a violent rejection. Anything below these levels is likely to bring SOL back to its previous high at around $ 60.
- If we look at the stochastic RSI we can see that it has fallen back into bearish territory, although the price continues to make new highs. This is viewed as a bearish divergence and would generally anticipate a larger pullback for SOL price. To negate this, the strength must exceed 50.
- The regular RSI has also shown bearish divergence as strength hit a lower high while price hit a higher high. Breaking below 70 is likely to end this rally.
SOL intraday analysis
- Spot price: $ 95.00
- Trend: bullish
- Volatility: high
- Support: $ 88.00
- Resistance: $ 100.00
Disclaimer of liability
The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
About the author
Domenic Fiore loves the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision of becoming an entrepreneur and wanted to be successful from a young age. Domenic has owned and operated an auto retail business since he was 16 and was part of two CBD companies through 2018 and 2019, seeing 10x returns in a few months. Then he realized there was a lot of potential and went headlong into learning what he could. He developed a great passion for technical analysis and knew this was his path to financial freedom. Over the past 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly thereafter, he wanted to help spread the word in the retail industry and help others to be successful.