FxNews—Solana is correcting its recent gains, losing almost 0.9% in today’s trading session. The primary trend should be considered bullish, as the prices have yet to stabilize below the 100-period simple moving average.
As of this writing, SOL/USD trades at approximately $223, testing the 100-SMA as support.
Technical Analysis
As for the technical indicators, the Awesome Oscillator histogram is red. But the bars are small, nearing zero, meaning the market lacks momentum. Furthermore, the Stochastic Oscillator and RSI 14 depict 31 and 42 in the description, indicating Solana’s short-term trend is mildly bearish.
Overall, the technical indicators suggest that while the primary trend is bullish, the cryptocurrency suffers from low momentum, and a breakout is necessary for the next bullish move.
Solana Dips 0.8% as Bulls Gear Up for a New Run
The immediate resistance is at $250. From a technical perspective, the uptrend will likely resume if Solana’s price exceeds this barrier. In this scenario, the prices will likely retest the November high at $265.
Conversely, the immediate support is at $223.0. The bullish outlook should be invalidated if SOL/USD drops below this supply area. If this scenario unfolds, the trend outlook should be considered bearish, targeting the 50% Fibonacci retracement level at $210.