Solana Price Forecast: SOL Unbothered by Bitcoin Woes, Uptrend Remains Intact

Last Updated July 23rd 2021
2 Min Read
  • Solana continues to grow as Bitcoin dumped during the weekend session.
  • The MACD’s technical picture affirms the bullish outlook.
  • Failing to close the day above $50 could lead to a surge in overhead pressure.
  • Solana is one of the tokens that have managed to chart their growth pattern independent of Bitcoin. Note that the massive bullish action in April pushed SOL above $40. The bullish action extended above $50, but little progress has been made toward $60.

    The non-fungible token (NFT) solution provider platform has also managed to hold in a broad consolidation range running from $39 to $51. The upper limit has been a tough nut to crack, hence all the attempts to close the gap heading to $60 have been thwarted. On the downside, the range support remains crucial to the uptrend.

    Solana battles to secure support above $50

    At the time of writing, Solana trades at $48 after retesting the resistance at $51. On the downside, the immediate support is anticipated at $46. However, various anchors are provided by the 50 Simple Moving Average (SMA), the 100 SMA and the buyer congestion at $43.

    A comprehensive look at the Moving Average Convergence Divergence (MACD) suggests that the path with the least resistance is upward based on the four-hour chart. In addition to moving higher within the overbought region, the MACD line has dramatically widened the divergence above the signal line.

    SOL/USD four-hour chart

     sol/usd 4-hour chart 051721

    The SuperTrend indicator affirms the uptrend as shown on the four-hour chart. A call to buy occurred during the weekend as investors panicked and sold Bitcoin to $42,000. If the buy signal remains intact, Solana will likely continue with the uptrend first to $51 and later stage a mission for gains eying $60.

    SOL/USD four-hour chart

     sol/usd 4-hour chart 051721

    According to the Parabolic SAR, the bullish outlook may be sabotaged or delayed. The parabolas (dots) are above the price, which implies that the sellers’ influence cannot be ignored. Moreover, closing the day under $50 may also lead to an increase in overhead pressure, leaving the support areas at $46 and $39 vulnerable to losses.

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