thecoinrepublic.com
- Solana’s native token- SOL is depicting signs of exhaustion after attempting to breach the resistance of $44
- Solana token jumped from a low of $41.50 to the resistance of $44.10 in Monday’s intraday session
- The current price of the Solana token is $42.45 established on the back of a 0.34% gains in the past 24 hours
Solana’s technical chart on the daily time frame demonstrates the possibility of a minor pullback on account of a bearish bias at the resistance of $44. The critical resistance level is bolstered by aggressive sellers waiting to invalidate the efforts of the bulls.
While the short-term bearish outlook remains indefinite, the 20 and 40 EMA have recently transpired a bullish crossover. Since the EMAs haven’t acquired a chance to catch up with the current trend, it is anticipated that a pullback will be terminated by these moving averages.
It appears that the price action has teamed up with the RSI oscillator to device hidden bearish divergence. In addition to it, the Daily Stochastic RSI is also at the cusp of entertaining a bearish crossover.
The volume of (25.77 M) is almost one-third of the volume of (73.54 M) the 20 period moving average. Lack of sufficient buying pressure suggests the possibility of a withdrawal which is relevant in this case. The above statement can be reinforced by the fact that the resistance level is accompanied by a Doji candlestick.
Solana technical Chart on the 4-hour time frame
In our last analysis, we mentioned that Solana would head towards the support of $37 before embarking on tackling new resistance levels. It turns out that the token price righteously maintained its bullish bias above the support trend line.
Having said that, the current technical chart of Solana on the 4-hour time frame projects weakness and a bearish bias will grant the token a downward breakout from the pattern.
Moreover, an exit ticket from the bullish continuation pattern would lead to Solana reinspecting the support of the golden retracement of FIB 0.0618 which lies at $36.94.
Although the moving averages are in favor of an uptrend, the oscillators have forecasted bearishness. The RSI on the 4-hour chart is depicting bearish divergence and the MACD has already disclosed a bearish crossover.
On the flip side, crypto markets are gorged with uncertainty so it wouldn’t be surprising if the current trend of Solana would sustain above the support trend line as a consequence of the latest news broken by the network
Is Solana actually in the running to kill Ethereum?
Ethereum, which is the hub of decentralized finance, has tons of competitors, out of which, the most prominent one in today’s times is Solana. While the crypto community is eagerly waiting for Ethereum 2.0, the Solana network has emerged to become one of the top cryptocurrencies of 2021 by solving the problem of scalability, low transaction fees, and speed.
Solana is capable of performing these functions as the network has developed a unique way of creating a system that determines the time of a transaction. This mechanism is termed as Proof of History and the network functions on Proof of Stake Blockchain.
The Solana network has secured its place outside the crypto community on account of top crypto investors and enthusiasts claiming that the network is faster than Ethereum.
Recently it has been alleged that the Solana network plans to raise between $300 to $450 Million to establish the ground as one of Ethereum’s top rivals.
SUPPORT : $37, $39
RESISTANCE : $44