Solana (SOL) is up significantly from the December 14 low but is consolidating in an area of relatively neutral movement.
The SOL has fallen since hitting an all-time high of $ 259.9 on November 6. The downward move continued until it hit a low of $ 148 on December 13th (green symbol). Although the price recovered thereafter, it has yet to regain previous support levels.
Technical indicators are neutral.
The MACD, formed by the short and long term moving averages (MA), is sloping up but has not broken into positive territory. This means that the short-term MA accelerates, but has to move even faster than the long-term MA.
The RSI, a momentum indicator, is right at the 50 line. This is a sign of a neutral trend.
Therefore, the can still trade in the $ 148 to $ 210 range for some time.
Short term movement
Trader @TradingTank sketched the SOL chart, suggesting that the token is likely to skyrocket as it recaptured the $ 175 region.
Since the tweet, SOL has continued to rise, hitting a high of $ 204.75, but the price fell shortly afterwards.
It is now back within the $ 170-176 support area created by the 0.5-0.618 fib retracement support levels and a horizontal support area.
In order for the uptrend to continue, it is important that the make a higher low within this zone.
However, there is no sign of a bullish reversal in the MACD or RSI.
Therefore, the most likely scenario remains that the consolidation will continue within the range outlined above.
SOL / BTC
The SOL / BTC chart is more optimistic than the USD chart. As the pair follows the descending resistance line, it is also trading above the 33,500 satoshi support area. More recently, it bounced back from this zone (green symbol) on December 17th and is currently trying to break out of the resistance line.
The RSI is slightly above 50 and the MACD is in positive territory even though it is falling.
Hence, it is possible for SOL / BTC to break out and approach the all-time high of 46,700 Satoshis.
BTC chart | Source: TradingView
You can see the BTC price here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.