Solana is a leading cryptocurrency in the industry, and it will regain the pre-FTX level within a few months. At the time of writing this post, SOL was trading around $21.55, forming a short correction on the upper Bollinger Bands that may come to the level of $17. It would be an ideal time to invest in Solana for the short term.
Before the FTX liquidity crisis in November, SOL was trading between $40 and $30. Many altcoins have regained the previous support of the pre-FTX level, but Solana is lagging. It is the right opportunity for the investor to capitalize on the growth. However, if Solana breaks the support, it can be long-term bearish.
Based on the technical indicators, we can predict the bullish momentum of SOL price for the short term because Bollinger Bands lack volatility; RSI is making a short correction after reaching an overbought zone, and MACD is also bullish with green histograms.
All these technical indicators of Solana suggest a continuation of this bullish trend by forming higher highs. However, you can read our Solana predictions to know how long the bullish trend will continue.
For the last many months, the SOL price has been in the bear’s grip. No candlesticks have formed in the upper Bollinger Bands, which suggests extreme bearishness. After taking support of around $10, SOL has formed two weekly green candles, but now it is facing resistance around the baseline of BB and forming a bearish candle for the third week of January.
Other technical indicators are also neutral, so we cannot predict a bullish momentum of Solana for the long term. Investors must wait for a few months until the SOL price forms a bullish pattern on the weekly chart.
Many people have regarded the short-term rally as a Santa rally at the beginning of a new year, so it might not last long. However, we think the current Solana price action suggests a change in momentum and will hit the pre-FTX level within a few months. You must keep a close eye on SOL prices and invest at the right time.