Solana price has suffered the same collapse the broader cryptocurrency market has experienced. After last week’s destruction of Terra’s LUNA, investors and traders are looking at projects with integrity – one of those is Solana.
Solana price has moved well off the lows it experienced yesterday, moving from a nine-month low of $35.63 to a current intraday high of $51.79 – nearly a 51% gain. The 88.2% Fibonacci retracement ($40.83), 78.6% ($50) Fibonacci retracement, and a high volume node between $30 and $50 in the 2021 Volume Profile have contributed to the bounce.
From the perspective of Solana’s oscillators, extreme lows have been met with clear evidence that a violent drive higher may be right around the corner. The Relative Strength Index hit lows not seen since January 2022. In the Composite Index, regular bullish divergence is currently present. Additionally, the %B’s slope shows it may cross above 0.2, giving some signal traders the condition needed to go long.
SOL/USDT Daily Ichimoku Kinko Hyo Chart
A daily close at or above the 78.6% Fibonacci retracement at $50 would likely confirm that Solana price has hit its major swing low and could begin another rise higher. The first major resistance zone above $50 is a resistance cluster near the critical $75 level: the 61.8% Fibonacci retracement ($73) and the daily Kijun-Sen ($75).
Downside risks remain a concern but are increasingly less severe in size and scope. Nevertheless, a daily close below $40 could indicate an even further and steeper push down towards the next high volume node in the 2021 Volume Profile at $18.