Solana has been under pressure in the past
couple of weeks alongside the broader crypto market as deteriorating macro
conditions and rising oil prices weighed on risk sentiment.
On the fundamental side, the upcoming Alpenglow
upgrade could be a key catalyst. Scheduled for October 21, the consensus
upgrade aims to reduce transaction finality, improving Solana’s performance for
applications requiring faster settlement.
On the macro side, despite higher than expected
US inflation data, we’ve seen minor changes in Fed
rate hike expectations and the slightly dovish repricing further out the curve,
suggest the market might be starting to get more concerned about the growth
outlook.
Looking ahead, we have the Flash PMIs, the FOMC, the
US-Iran negotiations and the US midterm elections as key catalysts. If the
economic data starts pointing to deteriorating economic conditions, then we
could see the market getting increasingly worried about growth.
This would be negative for risk sentiment and could
further weigh on Solana and the crypto market in general. What could drastically
change the picture would be an end to the US-Iran war, as that would
immediately improve the growth outlook and the risk sentiment.
SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that Solanais approaching the key support zone around the 97.00 level. If the
price gets there, we can expect the buyers to step in, with a defined risk
below the support, to position for a rally into the 148.00 level. The sellers,
on the other hand, will want to see the price breaking lower to increase the
bearish bets into the major upward trendline next.
SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a downward
trendline defining the bearish momentum. We can expect the sellers to lean on
the trendline, with a defined risk above it, to keep pushing into the 97.00 support.
The buyers, on the other hand, will look for a break to extend the pullback
into the 113.00 level next.
SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have the most recent swing low around the 104.50 level that could act as minor
support. We can expect the buyers to step in there, with a defined risk below
the level, to position for a break above the trendline. The sellers, on the
other hand, will look for a break to increase the bearish bets into the 97.00
support next. The red lines define the average daily range for today.
This article was written by Giuseppe Dellamotta at investinglive.com.