- Solana Shows 7.32% Increase Over 24 Hours Despite Recent Market Volatility and a 16.98% Drop Last Week.
- Technical Analysis: Solana Nears Crucial $160 Resistance Level with RSI at 46.90, Indicating Potential Upward Movement.
Solana [SOL] has recorded a notable increase over the past 24 hours, positioning itself above many of its peers in the cryptocurrency market. Despite this rise, market analysts express concerns about the potential for this trend to represent a bull trap.
$SOL looking pretty strong here against $BTC.
If we can get past this cluster of resistance here new local highs will come next.
That being said, I think all those built up lows below us ultimately end up getting swept, so don’t get euphoric if we do take the highs here.
The… pic.twitter.com/tR99uw86ku
— CrediBULL Crypto (@CredibleCrypto) August 7, 2024
Crypto analyst CrediBULL Crypto pointed out the potential risks associated with Solana’s recent price movement against Bitcoin [BTC]. He noted on X:
“If we can get past this cluster of resistance, new local highs will follow. Nonetheless, I anticipate that the lows built below us might ultimately be tested, indicating a possible pullback.”
Currently, Solana is trading at $151.34, reflecting a 7.32% increase from the previous day. However, it is still 16.98% lower than last week’s prices. Solana had dipped to around $120 recently but has since rebounded, now nearing a significant resistance level at $160.
The technical analysis by ETHNews offers a mixed outlook. The RSI stands at 46.90, which does not indicate overbought or oversold conditions. This level suggests the potential for continued upward movement if buying pressure increases.
Additionally, the Moving Average Convergence Divergence (MACD) displays a negative yet narrowing histogram, hinting at the possibility of a bullish crossover if the upward trend persists.
Discussion in the market has also turned towards the potential for Solana-based ETFs. While Mathew Sigel from VanEck sees a promising future for Solana ETFs, BlackRock remains cautious, viewing such developments as premature.
On the user engagement front, Solana’s active addresses in the last 24 hours reached 1.04 million with 32.55 million transactions.
The Total Value Locked (TVL) in Solana’s ecosystem stands at $4.808 billion, marking an 8.61% increase from the previous day, which indicates robust activity and utilization of the network.
Despite the optimism in some quarters, the broader sentiment around Solana remains cautious, with potential implications for both short-term trading and long-term investment strategies in the cryptocurrency sector.
This analysis underscores the importance of vigilance in the face of market volatility and the complexities of investment in digital assets.
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