Connect with us
Active Currencies 14290
Market Cap $2,520,335,253,668.90
Bitcoin Share 51.70%
24h Market Cap Change $0.24

Solana to $50? Here’s why it could be possible

2min Read

Solana’s one-day chart shows that bullish intent remains overwhelming. The RSI continues to move in the overbought territory above 70 and the On-Balance Volume has been climbing higher.

Solana to $50? Here's why it could be possible

Share this article

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

  • Solana has a bullish structure on the higher timeframe price charts.
  • The $40-$50 zone could be pivotal in the coming weeks.

Solana [SOL] was in the midst of a bullish run of a magnitude not witnessed since April 2022. However, the run back then was followed by a continuation of the previous downtrend. Was the same scenario set to repeat itself?


Is your portfolio green? Check out the SOL Profit Calculator


News of FTX unstaking an additional 1.6 million SOL meant bullish sentiment could take a hit and lead to a large price correction. It was unclear if traders and investors could expect such a drop, as Bitcoin [BTC] managed to stay above the $33k level and could go further up.

Where would an ideal retracement take SOL prices?

Solana to reach $50? Social sentiment suggests this was a very likely scenario

Source: SOL/USDT on TradingView

The one-day chart showed that bullish intent remained overwhelming. The RSI continued to move in the overbought territory above 70 and the On-Balance Volume was climbing higher. Together they showed buying volume was on the rise and the upward momentum was firm.

The higher timeframe charts showed that the move above $27-$30 was a definitive signal that further gains could follow. They did, and SOL reached $46.9 on 1 November. A revisit to the former range highs at $27 would be an ideal long-term buying opportunity.

The Fibonacci extension levels showed $44.08 and $51.46 were levels where bulls could book profits and wait for a retracement.

The conviction of buyers in the market meant such a deep retracement might not arrive anytime soon

Solana to reach $50? Social sentiment suggests this was a very likely scenario

Source: Santiment

The Weighted Sentiment shot higher in recent days as prices surged northward. The Social Dominance also rose enormously to stand at 6.32%. These metrics underlined the idea that the bullish narrative for SOL had strength in the eyes of the majority.

Yet, by itself, the social metrics do not exclude the possibility of a retracement.

Solana to reach $50? Social sentiment suggests this was a very likely scenario

Source: Coinalyze


Realistic or not, here’s SOL’s market cap in BTC’s terms


The spot CVD on the Coinalyze data has been on a steady uptrend since 19 October, when the SOL price was at $23. This showed the demand for the token. The rally was followed by a rising Open Interest (OI) as well, which specified strong bullish sentiment.

The weekly chart revealed that the $38-$50 region, which had served as resistance in August 2022, could pose problems for the buyers once more. If $50 was flipped to support, it was likely that SOL could rally to $80 and $105 next.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.