One of the well-known altcoins with a lot of potential and expectation is Solana. The most recent bullish trend was believed to be sustainable, but this morning’s support level at $22 proved otherwise as the price continued to decline.
In the past few weeks, this price has been consolidating, but at the moment, it is ranging between $20 and $20.5, where there is a slight support, likely in relation to the 0.382 EMA. It denotes the coming of additional bearish momentum as well as at least a bearish confirmation. Although it is the weekend and typically the cryptocurrency market doesn’t move that much over the weekend, technically speaking, some crypto analysts could find a lot of support at the $20 price level right now.
However, from a technical perspective, there could be more breakouts and a drop down to the next support level of $18.5 price, with a technical range all the way from $18 to $18.5 price. These are sturdy technical levels since they previously served as resistance and support levels before, during, and after the FTX crash. But the market is approaching a level.
Fundamentally, the entire value of Solana has also decreased little. A great deal of turnovers have fallen. It begins to decline at least slightly by the end of January 2023. As we can see, it is clear that Solana is not supported by fundamental analyses. The inflation rate will be the subject of breaking fundamental news on Tuesday, which may or may not have an impact on the market.
If the outcome of that were favorable for Solana, the market for that country could return to some consolidation because, technically, the market has turned bearish after the breakout toward downside from $22 and $22.5, and the market is below the exponential moving average. The inflation rate is also a fundamental factor that could have an impact on the dollar strength index, which has been bullish for the past few days.
Solana is currently at a support level to be held through Tuesday at a price of $20 per SOL. If there is no inflation rate, the price will drop to $18.5 and $18 without any resistance. Therefore, depending on the conclusion of the inflation rate, there is still opportunity for more bullish momentum even though we are still holding $20 as a support until Tuesday, 14.
In conclusion, it is difficult to determine whether or not $20 price level will act as a support level for Solana as at today. The price of Solana is highly volatile and is subject to many external factors. Therefore, it is impossible to predict with certainty whether or not the $20 level will hold.
The current price of Solana does not determine a bearish momentum. The price of Solana is determined by supply and demand, and the current price level is not necessarily indicative of a bearish or bullish trend.The current market sentiment for SOL is bullish, as the price has been steadily climbing over the past few weeks.
The price of SOL is expected to continue to rise shortly, as the platform gains more adoption and the demand for the token increases. Overall, the current market price of SOL is quite attractive for both short-term and long-term investors. With the increasing demand for the token and the bullish sentiment in the market, the price of SOL is likely to continue to rise shortly.