Despite a consolidation-focused price action, Solana has maintained its upper limits, indicating a possible breakout scenario. Lower-ranking cryptocurrencies consistently take over the rankings for SOL during this tough consolidation phase. The earlier closely trading pair of SOL and ADA is now trading at a significant difference, with ADA taking the lead. The prospect of Solana seems dull on the immediate basis, with a roadmap showing no major implementations in the remaining months of 2022.
Since other decentralized platforms and their smart contracts are performing better than SOL, there is a lot of work to be done by developers before ETH shifts to Proof of Stake and attracts other crypto users to its network. Such an action could be disastrous for SOL, which is a competitor or potential replacement of Ethereum, and such has been the belief of Solana enthusiasts. Solana is worth $15,021,087,832, which is still a lot compared to other blockchains, but one has to be ahead of its competitors rather than now ranking cryptocurrencies.
Solana has failed twice to breach its immediate resistance as sellers take command of the price action near $47. Technicals show a new swing with a positive bias, but the probability of breaching the immediate resistance still isn’t that strong. Should you continue holding your SOL tokens? Read our Solana price prediction to know!
The SOL price action is just another repetition of previous swing action as immediate resistance is tallied with 100 EMA, consistently declining. Positive price action would have taken SOL token to the 100 EMA curve creating a straight line pattern and incline in the 100 EMA curve.
In light of such a buying spree, Solana is moving towards a breakout pattern as the MACD indicator has marked a bullish crossover pattern in the last two weeks. The previous bullish crossover created on July 28, 2022, was rather short-lived as profit booking changed the outlook of the indications.
RSI indicator is the meantime that has shown some strength that replicated the action at the previous swing. The real test of SOL will be after reaching $47, which is marginally away from the latest trading value of $42.9. The 200 EMA for SOL is trading at $69 with a declining state. Meeting these moving averages with a breakout pattern can help Solana recover on the larger time frames.
Solana price action in the long-term seems like consolidation with some buying support at the bottom levels. While the volumes have taken a huge decline, RSI indicates a slow price rise and could take some time to reach its positive side.
MACD marks a bullish crossover, but the resistance of $47.3 is still strong to be ignored. Breaching this level is vital for the positive movement of Solana cryptocurrency in both the short and long term. In the pre-2022 crash levels, SOL had support at $78, which is tremendously above the latest trading value.