Is Solana at risk of a price reversal? What historical trends say:
Solana (SOL), the world’s fourth-largest cryptocurrency, gained massive attention as it broke out of the crucial resistance level of $187.
Following SOL’s crucial breakout, there is a high chance that it could rise to the next resistance, which is near $204.
However, there is also a concern among the new investors about a potential price reversal from this upcoming resistance.
According to the historical data and price action, whenever SOL has reached the $204 level, it has consistently experienced a notable price reversal.
Since March 2024, SOL has reached this level twice and experienced a significant price reversal each time, which is the reason for the concern among new investors.
As of writing, SOL is trading near $192 and has experienced a 4.5% upside move in the last 24 hours. Despite an impressive price surge, trading volume has dropped by 18% over the same period.
This decline in trading volume might indicate that investors and traders are conscious of the resistance level due to the historical price reversal.
According to technical analysis, SOL recently broke out of the crucial resistance level of $187, and was heading toward the next resistance level of $204.
Following this breakout, there is a high possibility that SOL could reach the $204 level in the coming days.
However, technical indicators such as the Relative Strength Index (RSI) are in the over-bought zone, signaling a potential price reversal.
The stochastic level was also in the over-bought area, with its value above 80 at press time.
Also, major liquidation levels emerged near the $180 and $203 levels.
This creates a potentially bullish outlook for SOL.
#ETH_ETFs_Trading_Today #Bitcoin_Coneference_2024 #BinanceHODLerBANANA #SolanaStrong #VanEck_SOL_ETFS
