Solana Holds Steady Above $140 – Technical Analysis

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FxNews – In the previous Solana technical analysis, in the bear market forecast, we stated that if the SOLUSD price dips below $145.0, the uptrend will be interrupted, and the market will likely drop to the $140.0 mark.

Analyzing Solana’s Primary Trend

It is essential to dissect the primary trend of a trading instrument. This will assist both traders and investors to join the main trend, which mitigates the risks involved in trading. Therefore, we zoomed out to the daily chart for a broader view of Solana. As depicted in the chart below, Solana has been in an uptrend since late 2023. But the pair has traded sideways between the $112.0 and $160.0 marks since April 12, 2024, after the price fell below $160.0.

This means Solana should return above the $160 mark for the uptrend to continue.

Analyzing Solana's Primary Trend

Analyzing Solana’s Primary Trend

Solana Holds Steady Above $140

As shown in the USDSOL 4-hour chart below, the cryptocurrency in discussion dropped to the $140.0 mark, which coincides with the 38.2% Fibonacci retracement level. However, the buyers managed to maintain the price above $140.0, and as of writing, Solana trades at about $145.0 against the U.S. Dollar.

Solana Holds Steady Above $140 - Technical Analysis

Solana Holds Steady Above $140 – Technical Analysis

Solana Price Forecast – Bulls Defend $140, Target $170

While the technical tools in the 4-hour chart don’t provide valuable information, from a technical perspective, the trend remains bullish as long as the bulls hold above $140.00. That said, the current bullish target is to break from the $160.0 barrier, a strong resistance that has kept Solana from rising since April 12.

Solana Holds Steady Above $140 - Technical Analysis

Solana Holds Steady Above $140 – Technical Analysis

Solana’s path to $170.0 will be paved if this scenario comes into play.

The Bearish Scenario

Solana Bearish Scenario

Solana Bearish Scenario

On the flip side, if the SOLUSD price dips below the $140.0 mark, the short-term downtrend that began on May 7 from $157.9 can extend to the %50 Fibonacci ($136.0), followed by %61.8 Fibonacci, the $130.8 mark. For this scenario, the bears should maintain the price below EMA 50.

Therefore, traders and investors should monitor $140.0 and observe the price action above or around this pivotal area to make informed decisions and adjust their strategies accordingly.

  • 12 May 2024