Jump to $40: Solana Technical Analysis Update

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• Solana rallied in 2023 but failed to break above the horizontal resistance
• A bullish case remains valid unless the price moves below the 2022 lows
• If it breaks above horizontal resistance, Solana may trade above $40

Solana Technical Analysis Update

Solana rallied in 2023 but failed to break above the horizontal resistance. The market is bearish while below this level, however a break above could trigger more gains and potentially push Solana’s price above $40. The 2022 lows remain in place, so a bullish scenario remains valid as long as the market does not dip below them.

Current Price Action

After rising from $10 to over $25 this year, Solana’s price has been consolidating after trading at around $26 in January. This has caused some doubts among bullish traders, however these doubts can be cleared by looking at the bigger picture.

Bullish Case Remains Valid

As long as the market does not dip below last year’s lows, a bullish case for Solana remains valid. A daily close above horizontal resistance would open up more room for growth and could potentially push the cryptocurrency’s price past $40. This could be further aided by renewed US dollar weakness if inflation data follows its expected path.

Cryptocurrency Investors Thrilled With 2023 Performance

Cryptocurrency investors have been thrilled with this year’s performance thus far, with Bitcoin bouncing from last year’s lows and triggering similar movements within other major cryptocurrencies such as Solana.

Conclusion

The best way to clear doubts about potential bullish trends is to look at the bigger picture of any given asset or cryptocurrency. In terms of Solana, a daily close above horizontal resistance should trigger more gains and potentially take it past $40 if US dollar weakness resumes along with inflation data following its expected trajectory.