What to know:
- Solana is trading at $75.97, gaining 1.49%, with $1.88 billion daily volume and $44.26 billion market capitalization.
- Analyst says holding above the 0.5 Fibonacci retracement could preserve Solana’s long-term $500 price target.
- Short-term analysis identifies $76.45-$76.70 entry zone, while $77.35 breakout would invalidate bearish outlook.
Solana price is approaching an important technical level as analysts weigh its short-term weakness against a more optimistic long-term outlook. While the cryptocurrency continues to face resistance on lower time frames, one market analyst believes holding above a major Fibonacci retracement level could keep the path open for a much larger rally in the future.
Solana (SOL) is trading at $75.97, up 1.49% over the past 24 hours. The cryptocurrency recorded $1.88 billion in daily trading volume, while its market capitalization reached $44.26 billion, giving it a 2.01% share of the overall crypto market.
Also Read | Bitcoin Bear Market Nears End as Rare On-Chain Signal Sparks Bullish Outlook
Fibonacci Support Keeps Long-Term Outlook Positive
According to a recent post by Crypto analyst Crypto Patel, Solana price can continue moving up towards $500 as long as it manages to stay above the 0.5 Fibonacci retracement level. In addition, according to the analyst, the mentioned level is an important part of the market structure in general.
In technical analysis, Fibonacci retracement levels help to define levels where buying interest may emerge as a response to a correction. Therefore, staying above the 0.5 Fibonacci level usually means that the uptrend in general is still active despite the price corrections.
Long-term outlook of the analyst implies that the mentioned correction of the cryptocurrency doesn’t mean that the overall growth trend comes to an end. However, holding the support mentioned above could be the base for the future rise of the price once market conditions become better.
Solana Price Eyes Critical Support Levels
Even though the long-term forecast is positive, one-hour chart a bearish pattern that will operate in the short-term period. An entry point was set at the range of $76.45 to $76.70, while downside targets are set at $75.70, $74.30, and $73.60.
As the analyst explains, Solana price managed to break the mentioned level but failed to hold it. Now, the price moves lower and tries to break the short-term support that could work as resistance in case of a recovery. Lower highs are seen on the chart.
As long as Solana price stays below $77.30, the bearish pattern is valid. A breakout above $77.35 should invalidate the bearish setup and indicate that buyers gain control over the market.
The different time-frame outlooks highlight that Solana’s short-term direction and long-term potential are not necessarily aligned. While lower time frames suggest additional downside is possible, the broader technical structure remains positive if major support continues to hold.
For investors, the coming sessions could determine SOL’s next move. Breaking down the support levels can result in further decline, but a move back above the resistance levels will boost confidence among traders who will push for another chance at higher prices. SOL is a major blockchain network whose price is closely monitored due to growing popularity of its ecosystem.
Also Read | Litecoin Price Eyes Breakout as Network Growth Fuel Bullish Outlook
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Be the first to comment