Price Analysis

Solana Price Analysis : SOL Price Enters Correction Phase Before Another Leg Up

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Solana Price has been surging high while the broader crypto-market has been fairly flat over the last week. The Defi platform’s SOL has catapulted into the top-10 with weekly gains of 52%. After achieving an ATH at $128, it is now entering a correction phase. For SOL to get back on track before the next upcycle.

Over the last 24 hours, SOL has slipped from a high of 126.70 to $104.67. At the time of writing, it is trading at 116.43 down by 6.3% in the last 24 hours. 

Previously, the Momentum Reversal Indicator (MRI) was disregarded during this remarkable and exponential surge, but the latest sell signal in the form of a red ‘one’ candlestick appears to be playing a role.

Also Read : SOL Price prints humongous gains! How High Can Solana Price Hit Before 2021 End?

Solana is predicted to challenge the demand zone between $91.51 and $96.27. A reversal is more than likely here if the buyers attempt a comeback around this barrier.

However, there’s a risk SOL will drop below $91.51 before resuming its upward trend. Although, if SOL defys the dip and climbs back to its ATH. The next target will be the $140 level. 

Will The SOL Uptrend Continue ?

The heavy wave of selling pressure was factored into each of SOL’s indications. Despite this, it continued to trade above crucial zones. 

The RSI, for example, had dropped sharply from the overbought zone and was approaching the half-line. Traders should not be concerned about a stronger downturn as long as the RSI remains above 45-40.

After creating its peak, the Awesome Oscillator also registered four red bars. As a result of selling pressure, the -DI was creeping closer to the +DI line on the Directional Movement Index. However, there had not yet been any signs of a crossover.

Given the aforementioned signals, SOL has a strong chance of continuing its upward trend as long as the indicators remain in positive territory. Failure to do so would lead to a prolonged sell-off.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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