Solana trades in a robust bull market, above the 50- and 100-period simple moving averages. The cryptocurrency in discussion began its uptrend trajectory on November 24, testing the November 2023 all-time high at $260 as of this writing.
As for the technical indicators, the Stochastic and RSI 15 depict 86 and 68 in the description. This indicates Solana is overpriced in the short term so that a consolidation phase could be on the horizon.
Overall, the technical indicators suggest that while the primary trend is bullish, the market is likely to trade sideways or dip toward lower support levels.Â
Why Solana Might Keep Climbing
From a technical standpoint, Solana’s trend remains bullish as long as the prices exceed the 50-period SMA or the 223.0 mark. However, joining the bull market when it is saturated with buyers is not advisable. Therefore, we suggest retail traders and investors wait patiently for SOL/USD to consolidate near the lower support levels.
In this scenario, the $245 and $223 supports could provide a low-risk entry point to join the bull market.
Please note that Solana’s bullish trend should be invalidated if the prices fall below the 50-period simple moving average or the 223.0 mark.