Solana prepares for a swift upward move to crucial resistance zones. Though this rally might see many investors thrilled, it might be nothing besides a temporary bounce. Such a move will possibly catch most traders unaware.
Solana to Trap Unexperienced Investors
Price actions between May 5 and May 12 saw Solana’s price losing approximately 63%. That witnessed the altcoin slumping towards $34.97 from the $95.20 peaks. The plummet emerged as most investors in the space held their bags following the LUNA-UST catastrophe.
Meanwhile, the crypto industry witnessed a colossal downtrend. One that saw most assets losing over 60% within the previous week and nearly 85% since their respective ATHs. Nevertheless, the plummets appear to reach an end, though somewhat temporarily.
The paused downtrend had many alts, including Solana, rallying. While publishing this content, SOL traded at around $52, with the possibility of moving higher. Bulls will likely eye the nearest resistance at $76.91. That would translate to a 45% upswing from the press time price levels.
This rally might see many investors getting euphoric and continue longing alts. Nevertheless, Bitcoin’s macro outlook remains weak while favoring bears. Thus, enthusiasts should watch out for a rejection around the $76.91 mark. Another bearish regimen might see the alternative token crashing by 72% towards the nearest support of $38.43.
On-chain volume supports the upcoming upside move for SOL price. This metric dropped from the 5.82 billion high on May 12 to the May 18 level of 1.71 billion. That reflects a 70.6% slump in Solana’s on-chain volume.
A Temporary Bounce?
Though this plunge means bearishness, Solana reacted accordingly. Nevertheless, market players can await a slight uptick in the token’s price and on-chain index. That might witness SOL hitting the hurdle at $76.91, which matches the prediction from a technical standpoint. Thus, interested market players should watch the obstacle at $76.91 for a possible reversal, authorizing a temporary bounce for Solana.
As highlighted before, Bitcoin remains bearish. While publishing this content, Bitcoin traded at $29,293.43, losing 1.69% within the past day. BTC needs massive upticks towards the $35,000 mark to support bullishness in the marketplace in the short term.
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