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Solana enters a neutral position- Here are key levels to consider

2min Read

Solana [SOL] lacked clear price direction in the past few days. A solid trend may emerge if BTC reclaims $29k or drops below $27k.

Solana enters a neutral position- Here are key levels to consider

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • SOL’s structure was neutral at press time. 
  • Weekly price volatility eased, but funding rates improved.

At the time of writing (26 April), altcoins, including Solana [SOL], were all green after Bitcoin [BTC] reclaimed the $28k price range. In particular, SOL was up 5% in the past 24 hours but was yet to recover last week’s losses. 


Is your portfolio green? Check SOL Profit Calculator


Source: Coin360

Notably, SOL shed about 6.5% in the past seven days after BTC fell to the $27k price zone and could experience significant volatility, especially early next week (2-3 May) due to the FOMC meeting. 

Indecision amongst buyers and sellers – Which way for SOL?

Source: SOL/USDT on TradingView

Since 22 April, SOL’s price action oscillated between the dynamic 50-EMA and 200-MA – denoting indecision among buyers and sellers. In particular, the 50-EMA (orange line) moved horizontally, highlighting the recent consolidation.

If the 50-EMA remains flat, an extended price consolidation could be likely for a while. The RSI and OBV were also flat, reinforcing the consolidation possibility. But the downsloping 200-MA indicate sellers still had the upper hand, at press time. 

As such, SOL could oscillate between $19.97 and $23.81 in the next few days/weeks. Such a scenario could offer potential gains by targeting the range’s upper and lower levels. A surge beyond $23.81 could set SOL to retest the supply level at $26, especially if BTC reclaims the $29k. 

However, a daily close below the 200-MA and the $19.97 support will indicate increasing weakness in the market. A breach of these two levels could easily set the SOL/USDT pair to sink to the March swing low of $16. 

Weekly price volatility eased; funding rates fluctuated

Source: Santiment


Is your portfolio green? Check SOL Profit Calculator


A look at the on-chain metrics revealed that funding rates fluctuated since 19 April. At press time, funding rates were positive after flashing red for a considerable part of 25 April.

The fluctuating rates indicate wavering demand and could set SOL into an extended consolidation.

Despite the weekly price volatility easing, sentiment remained eerily negative – reiterating investors’ reservations about the asset.  

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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