SOL Is Attempting To Challenge the 50 Ema After a Rejection

The 9th biggest crypto in terms of market cap, Solana (SOL), attempted to break above the 50 Exponential Moving Average (EMA).

As seen on the daily chart for SOL/USDT, SOL entered into a 4-day positive sequence to elevate its price from $32.69 to close off at $39.58. Following the sequence, SOL’s price was poised to add another positive daily candle but was met with resistance at the 50 Exponential Moving Average (EMA) line.

Now, it seems that SOL’s price is attempting to challenge the 50 EMA for the second time in two days. SOL’s price is currently positioned between the 20 EMA and 50 EMA after it comfortably flipped the 20 EMA line in the aforementioned 4-day sequence.

Should SOL’s price successfully break above the 50 EMA line, the next key areas of resistance are $42, $45, and $48.

According to CoinMarketCap, the price of SOL stands at $40.77 after a 24-hour increase of around 2.07% at the time of writing,

SOL’s price has also strengthened against Bitcoin (BTC) and Ethereum (ETH) by approximately 2.21% and 1.85%, respectively. At the moment, 1 SOL is worth around 0.001917 BTC and 0.02902 ETH.

To try to determine whether or not SOL’s price will rise above the 50 EMA level, it may be important to note the current 24-hour trading volume statistic. The 24-hour trading volume for SOL is $1,160,020,625, which is a 6.64% drop in its daily trading volume.

The drop in the 24-hour volume may suggest that SOL’s price will not be able to challenge the 50 EMA line as there are not enough orders to push its price up. However, yesterday’s trade volume also included sell volume. The decrease in daily trading volume may be a bullish sign.

Investors need to see what happens when the U.S. markets open as this is normally when sell volume enters the crypto market.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.