Solana cryptocurrency seems to have outperformed the broader market even when most of them fell to selling pressure. Whether the issue rose from the transaction complications faced at multiple trading platforms or because of a pre-planned selling strategy, Solana weathered the selling pressure and retraced more than 32% of its loss, closing at a net green value of $173.46.
The buying action seen from its swing support levels of $125 helped Solana outperform the broader cryptocurrencies. Currently, Solana is ranked at 7th position in terms of market capitalization. In fact, despite closing marginally positive, it climbed in terms of ranking as all other cryptos were in the red zone losing in double digits.
Currently, Solana has a market capitalization of $48 billion. This positivity on SOL has been taken from its goal of using blockchain network’s permissionless technology to assist decentralized finance. It not only relies on the proven capability of the Proof of stake consensus but has incorporated Proof of History to improve the scalability of Solana’s network.
Solana Price Analysis
A positively trending cryptocurrency with increasing transaction volumes and buying sentiment, there is a difference of 320% between its 200 Days moving average and current trading value of $164.5. In terms of points, the last trading value of Solana is 120 points above the 200 DMA and can induce a selling pressure at any point in time.
Solana marks a very important price action in the last 15 days, gaining more than 150% momentum, averaging around 10% a day. The bounce from its consolidation support levels of $68 was beyond comprehension. At present, SOL/USD trades close to its lifetime high of $195 levels and maintains a trend line angle of 53 degrees. While such degrees of upside movement has historically failed to hold the gains.
A profit booking on Solana is much warranted but considering its strong fundamentals; there might be something beyond the technicals. RSI is still trading in overbought zones for the last 30 days, indicating the superior level of bullish sentiment investors and buyers have on Solana. The 200 Day moving average lies at $40 levels and 30 Days moving average lying close to $90 levels.
Volumes have also been a three-tier jump from before August 15 daily volumes. All these aspects highlight an unpredictable to technically identifiable fact. Such indications should be taken advantage of by dedicating a smaller portion of your overall portfolio to ride the trend. Solana faces a resistance at $175 level on a closing basis and closing above $200 and induces a huge buying sentiment caused by the fear of missing out.
While the selling pressure has failed to show on the daily charts, the movement is quite clear on the hourly charts. Solana has strong resistance at $190 levels with support at $150 and $135 levels. The pace of falling RSI is nothing new, and Solana has rallied even with an RSI level of 40 – 45. There is a clear indication of rising hourly volumes in a time when crypto is falling.
According to our Solana price forecast, one should book some profits and extract some of their investment, leaving a major chunk to the current levels. Investors should also refrain from buying at current levels.