Solana Price Forecast: SOL Succeeds in Weathering Down the Storm, Holds Higher Support

Last Updated July 23rd 2021
2 Min Read
  • Solana is among the least affected cryptocurrencies by the massive crypto correction.
  • SOL seeks support at $34 to prevent potential losses to $25.
  • The RSI exits that overbought region, hinting at declines becoming apparent.
  • Solana has ignored the bearish advances in the market, thus remaining relatively stable. The token has rallied to a new all-time high of $42 this week. SOL is up 24% in seven days but has lost 2% on an hourly basis to trade at $35 on Friday. If support at $34 holds, market stability will be secured, allowing bulls to focus on the return to highs above $40.

    SOL Eyes Higher Support

    The four-hour chart shows a resilient bullish camp that has managed to shake off the bearish pressure that befell the cryptocurrency market on Thursday. Solana is pivotal between $34 and $35 in the wake of losing ground from $42. Moreover, the price holds above all the applied moving averages on the four-hour chart, including the 50 Simple Moving Average (SMA), the 100 SMA, and 200 SMA.

    SOL/USD four-hour chart

     sol/usd 4-hour chart 042321

    Intriguingly, the SuperTrend indicator has a bullish impulse on the four-hour chart. This indicator shows the general direction of an asset's trend. Solana's bullish outlook will remain intact as long as the SuperTrend indicator is green and sticks beneath the price.

    SOL/USD four-hour chart

     sol/usd 4-hour chart 042321

    Simultaneously, the Parabolic SAR confirms the bullish narrative. Like the SuperTrend indicator, this technical tool also points to an asset's trend. The parabolas (dots) moved under the price amid the liftoff from $20. Solana's uptrend will remain intact if the technical picture remains unchanged.

    Solana's Bearish Outlook

    It is worth mentioning that if support at $34 is lost, the bearish momentum will get aggressive. Moreover, if the bearish leg extends under $30, massive sell orders will be triggered as investors rush to cash for profit, afraid that their gains will be wiped.

    The Relative Strength Index (RSI) appears to drop from the overbought region heading to the midline, which is a massive bearish signal. The 50 SMA is in line to offer support around $26. Other crucial anchor zones include $20 and $14.

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