Solana‘s price movement in the last week has been volatile with traders taking profits and reducing exposure to the cryptocurrency. This can be seen from a drop of over 51% for the coin in just one month, but that seems to be slowly unwinding as prices edged up 3.6% since Friday’s close.
Solana price action: CoinMarketCap
Solana is currently trading at $14.48, which is higher than the weekly low of $12.73, according to data from CoinMarketCap. Solana closed yesterday’s trading session at $13.68 and looks to break above $14.00 today, based on the current momentum.
One of the reasons for this uptick in prices is speculation that Solana might start trending higher as it slowly recovers from a turbulent week. The retracement levels at $14.52 and $15.00 are also likely to act as a support mechanism for the cryptocurrency, which will fuel further gains in coming days.
SOL prices have been highly volatile in the last 4 hours, having recorded intra-hour movements of more than 3%. This is also a sign that investors continue to take profits in the cryptocurrency, which could result in even more volatility going forward. The high market volatility is indicated by the ATR (Average True Range) indicator which is currently at 3.06, a level that has been seen in the last week.
The immediate support for SOL price action can be found at $14.22 and then again at $13.91 as indicated by the Fibonacci retracement levels from the previous swing high of $15.80 to the low of $12.73. Traders will also be closely monitoring the 50-day EMA ($13.66), which is expected to act as a strong resistance for SOL shortly.
Traders are likely to keep a close watch on the $16.00 level going forward, as this is a key retracement point and will indicate if there’s further upside momentum in SOL price. If the bullish momentum fades and there is a break below this level, it could signal further losses for the cryptocurrency.
The technical indicators on the daily chart are currently neutral, but a break below $14.00 could change this to bearish in the near term. The MACD (Moving Average Convergence Divergence) indicator is trending higher and is also pointing towards more upside for SOL price in the days ahead.
SOL/USD daily chart:TradingView
SOL price analysis on the 4-hour and hourly chart is neutral, as the current momentum is likely to pave the way for further gains. For now, it looks like the coin prices are on their way to recovery after a dip last week, but the volatility levels are also expected to increase going forward.
The RSI is also indicating a buy for the cryptocurrency as it is currently at 62.61, which is closer to the overbought zone. So it looks like SOL is slowly recovering at $14.53 and there could be a further uptick in prices as investors take profits and reduce exposure to the cryptocurrency in the near term.
SOL/USD 4-hour chart:TradingView
The key support levels to watch out for SOL are $14.22 and then again at $13.91 in the days ahead. On the upside, it looks likely that SOL might reach $15.00 and then again at $16.00, making it one of the key altcoins to watch out for in the coming days.
The post Solana Slowly Recovers at $14.53, Further Upsurge Incoming? appeared first on Coin Edition.
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Source: Cryptocurrency - investing.com
