Solana's price movement is currently displaying a bearish trend and is expected to remain so as long as it stays below $40. The pattern of lower highs still holds true and only a significant bullish break above $40 will invalidate the bearish sentiment.
In early 2020, Solana was launched to support smart projects and decentralized apps. Its value saw an impressive rally, reaching a peak in November 2021, where it had an outstanding performance against the US dollar, with a trading value above $225. However, the pandemic and excessive speculation led to a significant drop in its value.
Currently, Solana is trading around $20, which is below its all-time high, but still a remarkable achievement since it has delivered over 1500% in returns since its launch.
In 2023, the cryptocurrency market experienced a bounce-back, with Bitcoin leading the way. Solana also witnessed a sharp rally but is still considered bearish as long as it remains below $40. Traders need to keep an eye on the series of lower lows, which could lead to a market decline.
Investors who wish to establish long positions should wait for Solana to trade above $40 to reduce the risk of market pressure and retesting of market lows.
0 Comments