Solana (SOL) consolidates as confusion mounts on the price!

Solana is a high-performance blockchain platform that can handle high transaction throughput. The Brave browser is a web browser that is built on the Chromium open-source project, and it incorporates a built-in ad-blocker, privacy features, and a rewards system for users who view ads.

Brave has announced that it will be integrating Solana as a supported blockchain platform for its rewards system, allowing users to earn and spend the cryptocurrency SOL on the Brave browser. This integration will enable faster, cheaper, and more secure transactions in the Brave ecosystem.

Solana can handle high throughput transactions in gaming, DeFi, tokenization, and other domains. Currently, SOL ranks amongst the top eleven cryptocurrencies despite its highly negative performance in 2022. At present, the market capitalization of Solana is $8,516,303,193 at a token value of $23.18, while the peak value of Solana touched $260.06 in 2021. 

Solana’s price action is currently consolidating between the key resistance and support levels to decide on the intensity of its breakout. $30 would be a tough resistance to crack. Hence a strong buying sentiment is required to tackle the selling pressure of existing holders. Read our SOL price prediction to know when will the buying pressure overcome the selling pressure!

SOL PRICE CHART

Based on the breakout candle on Jan 14, 2023, Solana closed the day with a decent increase compared to the dipped values. This candlestick confirms buyers hoarding towards Solana and indicates the strong probability of testing the 200 EMA curve. A similar breakout pattern could be witnessed near 200 EMA, despite the risk of getting a strong rejection.

The immediate resistance based on the price action of November 2022 and 200 EMA lies together, which could mount elevated exit pressure on token holders. As most holders would be in profit with the current rally in 2023, the chances of them existing the token too early are quite low.

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RSI has been trading in overbought zones since January 8, 2023, and there has been no incremental gain in SOL prices for the past few days. The MACD indicator is projecting the formation of a bearish crossover, indicating trouble ahead. The current support of $12.61 has been lifted to the 100 EMA curve. Despite the positive projection on daily candlestick charts, Solana still requires a positive trend to surpass the upper band of the November 2022 consolidation at $35.52.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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