Solana (SOL) Bulls are Aggressive Above the 105.50 Key Level

Solana (SOL) Bulls are Aggressive Above the 105.50 Key Level

 Published: March 31st, 2022

The recent news of the United Kingdom’s announcement to regulate cryptocurrency increased the buying momentum on top-tiered crypto tokens like Solana, ETH, etc. However, market participants are waiting to see a favorable condition, unlike China which banned cryptocurrency recently.

On the other hand, the volatility in the cryptocurrency market remained standard, while the trading volume was supportive of bulls. Moreover, the pressure from higher central bank interest rates and the Ukraine-Russia crisis led investors to keep faith in cryptocurrencies. However, the current regulatory plan should be monitored by investors to predict where the rule-making process will go from. Eurozone countries support digital assets, but it is still not clear in terms of regulation.

Solana is a functional open source project that provides support to DeFi solutions. The idea for this project came in 2017, and in March 2020, it was officially launched by Solana foundation, headquartered in Switzerland. Currently, there are 63% of Solana in circulation, and the last 24 hours' trading volume was up by 32% to $4,112,647,268.

Let’s see the upcoming price direction from the SOL/USDT technical analysis:

SOL/USDT Daily Chart

Solana (SOL) Daily Technical Analysis 31st March 2022

In the SOL/USDT daily chart, the price remained corrective since the beginning of 2022, where the recent increase in volume with a symmetrical triangle breakout opened a buying opportunity for the first time this year. Moreover, the price moved higher above the dynamic 50 EMA with an impulsive bullish pressure, which indicates that the short-term bulls are active.

The above image shows how the price remained corrective recently and how buying pressure came from the 78.00 key support level. After the triangle breakout, the price had a straight upside pressure with a 38% price gain, pushing the RSI to reach the overbought 70 level. As the price made new swing highs above the 122.22 near-term resistance level, a minor correction is pending before aiming higher towards the 157.70 level.

Based on the daily context, investors should consider the upcoming price direction as bullish as long as it trades above the 106.24 key support level. On the other hand, any bearish correction with an intraday buying pressure would be a solid long opportunity in this pair towards the 160.00 level.

SOL/USDT H4 Chart

Solana (SOL) H4 Technical Analysis 31st March 2022

Although there is no considerable correction in the daily chart, the H4 timeframe shows multiple bearish corrections to mitigate orders. The most recent static support level is at 105.53 level from where the price found ground before making a new high above the 122.00 swing high. On the other hand, the future cloud is extremely bullish while the Lagging Span is above the price chart.

The above image shows how the price trades above the dynamic Tenkan Sen and Kijun Sen with an opportunity of having a bearish correction due to the mean reversion. On the other hand, the Traders Dynamic Index Line shows a buying pressure where the TDI line reached the upper band level, indicating that the intraday price reached the upper bands level.

Therefore, based on the H4 timeframe, we can consider the upcoming price direction as bullish, where any bullish rejection from dynamic Kijun Sen would be a buying opportunity. However, a deeper correction below the dynamic Kijun Sen would initiate a consolidation before showing further buying signs.

SOL/USDT H1 Chart

Solana (SOL) H1 Technical Analysis 31st March 2022

In the intraday H1 chart, SOL/USDT is trading within a strong buying momentum where the most recent price made a new swing high above the 126.00 level. Moreover, the dynamic 20 EMA and Weekly VWAP are below the price and working as minor supports.

The above image shows how the Volume was supportive for investors where an increase in traders' activity is visible. In the indicator window, the MACD showed a PNP formation while the MACD line was above the Histogram. Meanwhile, the dynamic VWAP is at the 113.90 support level, which is the ultimate barrier for intraday bulls.

Based on this context, any buying pressure from dynamic 20 EMA or static 119.00 level would be a buying opportunity in this pair. On the other hand, a break below the 113.90 level may initiate a deeper correction towards the 105.53 support area.

Should You Try Buying SOL/USDT?

Based on the current multi-timeframe analysis, SOL/USDT is more likely to extend the current buying pressure towards the 157.00 area. In that case, any intraday buying sign from 125.00 to 113.00 would provide high potential buying opportunities.

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