Solana’s Growth Trajectory
Solana (SOL) has been showing signs of growth since mid-September. Despite recent losses that pushed SOL bulls to a decline of $25, the cryptocurrency’s trend remains intact. The blockchain network has made significant technological advancements and increased partnership numbers during the consolidation period in 2023.
Critical Price Levels
According to a recent price analysis, the $22 price level holds crucial significance for the future of SOL. This region is vital for the bulls to defend the upward movement. However, the desired upward movement did not occur, and the $22 level was tested as resistance again on October 12. During this process, there were two points that investors could consider.
Current Status of Solana Price
Examining the two-hour price chart reveals that Solana is currently in a downward trend. The $21.5 and $21.84 price levels, initially considered support zones on October 9, turned into resistance on October 12. The Relative Strength Index (RSI) has been below the neutral 50 level since October 8, and the On-Balance Volume (OBV) has been trending downward for the past ten days. This suggests stable selling volume, which is dominant over buying volume. With $21.5 becoming resistance, SOL may move to even lower levels.
Considering the $20.2 support level established in August, investors might consider short positions after a possible retest in the $21.5 region. Additional support levels at $21.13 and $20.6 could temporarily halt the downward movement.
Prospects of Solana’s Price
Recently, SOL found support at the $21.13 level, indicating a minor bounce in its price. However, Open Interest (OI) was decreasing at the time of writing. The uncertainty remains regarding a potential decline towards the resistance level of $21.6. Such movement could be attributed to volatility in the futures market.
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