Solana is a leading cryptocurrency known for its efficient and fast blockchain technology. At the time of writing this post, SOL was trading around $25.58, forming higher highs in the upper Bollinger Bands. It started a short-term rally from $10, and it will face resistance around $35 which was the support before the FTX security crisis in November.
SOL price action and other technical indicators are bullish, suggesting the continuation of this rally until $35. If Solana breaks the resistance, it will go up to $45, so it is the right time to invest for the next few months. You can read our Solana prediction if you want a more detailed outlook of the token for the next few years.
SOL is forming a weekly red candle in the upper Bollinger Bands after forming four green candles this month. It does not suggest bearishness, but the SOL price will consolidate in the upper Bollinger Bands for a few weeks before breaking the resistance.
Other technical indicators are also bullish on the weekly chart, but we cannot suggest long-term buying until it crosses the level of $45. The price of Solana consolidated from June, and it took support around $35 until October. Besides that, we can also find an increase in volume that may suggest upcoming volatility in the next few weeks.
Indeed, Solana is a popular cryptocurrency with a powerful blockchain system that has a lot of potential in the future, but in this bear phase of the crypto market, we think it is not the right time to accumulate more SOL for the long term. You can wait for a few months to get momentum before investing.
It is time to keep a closer eye on the crypto portfolio because 2023 will be a volatile year. You have to find the right opportunity to invest and book profit at the right time to avoid such volatility.