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Friday, January 27, 2023

Solana Has Managed To Jump Past The Junction For Selloff

Solana has managed to go beyond a point of critical resistance that had initially limited its attempts for recovery during the period of price correction which began in November last year. This move by the cryptocurrency has garnered hopes of even more upside in the current month. For the uninformed, the price of the cryptocurrency went through a period of extreme pullback upon testing its downward sloping trendline in the last couple of months. 

Solana Has Been Seeing Some Recent Upticks In Its price Movement

For example, the SOL/USD pair went down by 60% just two months after it managed to retrace from the earlier resistance level that Solana had experienced in December 2021. Similarly, it had gone down by around 40% in a similar move for a retracement that was led by a selloff near the trendline in the November of 2021.

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But the cryptocurrency managed to flip the trendline resistance as support after it broke above it on the 30th of March. This was then accompanied by an increase in trading volume which showed the conviction of the traders in the breakout move. By doing so, the price of SOL went on to rally by 25% to reach a sum of $135, which brought the psychological resistance level of $150 within reach. 

From a purely technical perspective, the breakout move of Solana above its falling resistance for the trendline went on to coincide with a far bullish crossover between the two important moving averages- the EMA for 20-days, and the 50-day EMA. This has been dubbed the golden cross, as it is a technical indicator that occurs when the short-term moving average jumps above its long-term moving average. 

Delphi firm went on to highlight a correlation that took place between the price of Solana and the incremental combination of a couple of technical indicators.

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