Technical indicators show that Solana’s market is in a state of saturation and therefore many investors in this digital currency are concerned about falling prices. However, as Solana’s price history shows, the digital currency continues to grow in many cases after entering the zone.
According to the Kevin Telegraph, Solana recently passed significant resistance, which between November 2021 and March 2022 (November to March 1400) halted its growth several times and did not allow the price to break its downward trend. Overcoming this important resistance has led many market participants to once again rely on this digital currency and imagine that Solana may experience further growth in April 2021 (April 1400).
Solana has been embroiled in a sharp correction in recent months, failing to cross several times after hitting a multi-month downtrend on the chart.
For example, after this digital currency hit resistance in December 2021 (December 1400), it lost 60% of its value in two months. The price of this digital currency also fell by 40% in November 2021 (November 1400), after a similar move due to the wave of sales created near this area.
However, four days ago, on March 30, Solana managed to quell the resistance and turn it into new support. At the same time, the volume of transactions in this digital currency increased and showed that traders believe that Solana has completely broken its resistance. With the defeat of this resistance, the price of Solana increased by 25% and reached $ 135. Now this digital currency is about to reach psychological resistance of $ 150.
Solana broke her resistance just as she crossed her downward line, as her two main moving averages formed an upward trend. These two important indicators are the 20-day moving average (green line) and the 50-day moving point (red line).
What happens on Solana’s chart is called the Golden Cross, and it happens when a short-term moving average of an asset decreases its long-term moving average from the bottom up. Older analysts use this intersection as a buy signal.
For example, the intersection of the 20-day moving average and the 50-day moving average of Solana in August 2020 (August 99). Then the price of Solana rose 650 percent to more than $ 267. It is worth mentioning that at that time other fundamental and technical factors were involved in this issue and that the crossroads was not the only reason for Solana’s growth.
Thus, it can be said that the golden cross increases the probability of continuing the upward trend of Solana, breaking through the resistance and staying above the downward trend line.
If we look at the technical reviews of Delphi Digital Research Company (Delphi Digital), we can say that Solana’s market trend will continue to be upward.
In its study, the company highlighted the relationship between Solana’s price and the combination of its two technical indicators, namely S / R Flip and Relative Strength Index (RSI) mismatch.
When the Solana RSI first reached above 70 (saturation zone) after a sharp jump in price and crossing a significant downward line, the price rose, contrary to this index, which was moving down.
For example, it increased by 378% after Solana entered the shopping saturation zone in August 2021 (August 1400). In addition, when the digital currency entered the region between May and June 2021 (May to June 1400), its price increased by 268%. According to Delphi Digital, Solana’s performance and models today are similar.
So it can be said that Solana will continue its upward trend and as can be seen from the level of Fibonacci correction, the peak of this upward trend is $ 261 and the bottom is $ 77.50. In this case, Solana’s temporary price target in its uptrend will be $ 147 to $ 150.
Now, if Solana fails to reach the $ 147- $ 150 price range or makes adjustments after dealing with it, he could fall back to $ 120, which is his temporary support. In this case, it is also possible that the price of this digital currency will fall to 20-day and 50-day moving averages.
Solana’s Price Analysis: Opportunity to Jump to $ 150 was first published in Digital Currency.