Solana is holding slightly above the $125 support level, suggesting a potential bullish recovery toward $157, supported by multiple long-tail candles.
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Altcoins are gradually gaining momentum, with Bitcoin trading at $87,000 after an overnight recovery. Solana, the sixth-biggest cryptocurrency, has registered a 5.52% recovery in the past 24 hours.
Now, Solana is trading at a market price of $144. Will this short-term recovery result in a new bullish trend in Solana?.
Solana Sustains Above $130, Is $157 on Horizon?
On the daily chart, the SOL price trend shows a lower price rejection on March 4, with a 24-hour low at $130. Buyers managed to push the SOL token price higher, resulting in a 1.18% recovery by the end of the day.
Currently, the SOL price action reveals a Doji candle formation, indicating uncertainty in the price trend. However, the lower price rejection near $130, indicated by multiple intraday candles, reveals strong support for Solana at lower levels.
The overall downtrend has resulted in a death cross between the 50- and 200-day EMA lines. However, significant price fluctuations have caused the MACD and Signal lines to converge, leaving the momentum indicator uncertain. Meanwhile, the dynamic average lines signal a potential selling opportunity.
Growing Supply to Pressure SOL Prices?
Although Solana shows a lower price rejection, growing supply pressure may warn of a potential bullish failure. According to a recent tweet by LookonChain, a crypto whale recently unstaked nearly 134,902 SOL tokens worth $19.3 million.
After unstaking, the whale placed multiple limit orders to sell 135,000 SOL tokens. These orders range between $171 and $294.8, reflecting the whale’s optimism about future prices.
Additionally, the unstaking of FTX/Alameda’s sole balance signals a potential supply surge. Of the 3.30 million SOL holdings, worth $31.3 million, FTX recently unstaked a batch of 58,964 SOL tokens valued at $8.52 million. Post-staking, these tokens were quickly moved to Binance to be offloaded onto the market.
Where’s SOL Price Headed?
According to Fibonacci levels, SOL price fluctuations are occurring between the $125 support level and the 38.20% ceiling at $177. The recent comeback in Solana will likely challenge the 23.60% Fibonacci level at $157.
On the other hand, a bearish continuation below the $125 support level would likely test the $100 psychological mark.
DisClamier:
This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect LACHAKARI opinion. Readers are encouraged to do thorough research before making any investment decisions. LACHAKARI is not responsible for any financial losses.
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