Is it Time to Buy Solana? Crypto Pros Reveal Their Price Forecasts16. Februar 2023
• The current price of Solana (SOL) is $21.73, with a 24 hour change of -0.51%.
• Bulls are struggling to maintain rally structure, as the 200 day MA provides local resistance for the uptrend.
• If bulls can break through the 200 day MA resistance, SOL could reach $26 in an 18.8% surge; however, a breakdown from here would send prices down to $16 in a 26.8% plunge.
Solana Price Analysis
Solana (SOL) bears are fighting hard to keep the bulls at bay, as the current trading price hovers around $21.73 (-0.51%). With positive macro sentiment driving markets upwards throughout January and Bitcoin (BTC) continuing its trajectory on an upward trend, bulls have been riding high into the New Year on hopes that SOL will follow suit.
200 Day Moving Average Resistance
However, recent weeks have seen SOL struggle against key resistance at $22.50 – leading to a messy 10-day retrace which briefly saw prices drop below the steadfast 200 Day Moving Average (MA). Despite catching support at $20 and finding legs in a consolidatory ranging pattern between this level and the 200 Day MA, it’s uncertain whether these levels will hold their ground or not.
A break upwards above the 200 day MA could see SOL resume testing at $22.50 – potentially surging up to around the $26 mark if resistance gives way; whilst failure to breach this hurdle could spell disaster for rally structure – sending prices tumbling down to nearest support at $16 in a 26.8% plunge..
The Relative Strength Index (RSI 14) is currently reading 55 – minor bearish divergence reflecting cautious buy pressure; whilst The Moving Average Convergence Divergence (MACD) is sat at 0.139 – minor bullish divergence reflecting some signs of bullish momentum attempting to break through resistance levels of the 200 Day MA..
Buy Sol Now?
Overall then, investors should be aware that judgment day is coming for SOL’s New Year rally; with upside potential capped at around 18%, whilst downside risk stands significantly higher at 26%. This produces an unattractive Risk:Reward ratio of 0.,7 making it risky to enter now before meaningful progress has been made above local resistance levels of the 200-Day MA.