October 31, 2023
The Solana coin has experienced significant growth in recent months, with its price surging from $17.41 to $31.99—an 84% increase since mid-September. However, the current bullish momentum is facing resistance at the $34 level due to increased selling pressure in the broader crypto market. This resistance is particularly evident as Bitcoin struggles to break past the $35,000 mark.
There are indications that a minor pullback may be on the horizon. A fake breakout from the $32 resistance level suggests that the SOL price is poised for a temporary decline. Additionally, the SOL price may face intense supply pressure at the $36 mark.
The 24-hour trading volume on the Solana coin is currently $539 million, indicating a 43% loss.
Analyzing the daily timeframe chart, we can see that the Solana price has been trading within a rising channel pattern, indicating a long-term uptrend. This pattern, combined with the prevailing bullish momentum, suggests that the coin price could potentially surge by 12% to reach the overhead trendline around $36.
While the SOL price has recently reclaimed the $32 level, the presence of overhead supply is hindering further upside. This suggests that a minor pullback may be in store. Historical data shows that previous pullbacks never went below the 50% Fibonacci retracement level, indicating that any upcoming pullback could find support around the $25.7 mark and potentially rejuvenate bullish momentum.
In the near term, the SOL price appears to be on a bullish trajectory. However, investors should be cautious of significant selling pressure around the $36 resistance level. Previous interactions with this resistance have led to major corrections, and a similar occurrence could cause the price to tumble down to the $20 range.
In conclusion, while the Solana coin has experienced impressive growth, there are signs of a potential pullback. The resistance at the $34 level and the presence of overhead supply suggest that a minor decline may be on the horizon. However, the rising channel pattern and historical support levels indicate that any pullback could be temporary and may provide an opportunity for bullish momentum to resume. Investors should closely monitor the $36 resistance level for potential selling pressure. Overall, it is important to stay informed and exercise caution when making investment decisions in the volatile crypto market.