Solana (CRYPTO: SOL) is trading sharply higher Wednesday, as Bitcoin (CRYPTO: BTC) rises modestly and while most cryptocurrencies are trading relatively flat. Solana have been trending on social media sites today because of the large upward movement.
Solana was up 15.69% at $177.23 at time of publication.
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Solana Daily Chart Analysis
- Solana had been trading in an upward facing channel but recently fell below the channel. The large move today shows that the crypto is looking to test support again to see if it can recover the trendline and trade within the channel once more.
- The crypto is trading below the 50-day moving average (green) but above the 200-day moving average (blue). This shows the stock is in a period of consolidation. The 50-day moving average may act as resistance, while the 200-day moving average may hold as support.
- The Relative Strength Index (RSI) has been slowly falling for the past couple weeks and sits at 44. This shows that sellers have been moving into the crypto, and selling pressure has now overtaken buying pressure, and there is more selling pressure in the market overall.
What’s Next For Solana?
Solana is trading below the upward channel it once traded in. This channel was an area where the crypto traded with strong bullish momentum, but as it has fallen below support, bulls have lost some steam. Bulls are looking to see the crypto recover this trendline for the bullish momentum to pick up once again.
On the other side, bears are looking to see the crypto continue to fall and for this support level to begin to act as resistance. This may show the crypto is ready for further bearish moves in the future.
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