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Solana Zoomed Up By 20% In A Week, This Could Be The Next Target

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Solana has witnessed strong bullish power over the past seven days, however, at the time of writing, the bulls have lost steam. Over the past 24 hours, the coin has depreciated by 9%. The current support level for SOL is $38. The price of the asset recorded a monthly high after a large-scale rally that occurred on July 13. The technical forecast for Solana showed that the bears are taking over.

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After bitcoin dropped 6% on its chart over the last day, altcoins also had the same impact on their charts. Solana’s purchasing power declined significantly, leading to negative price action. After a relief rally, coins tend to bounce back on their charts quite often.

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If purchasing power picks up, then Solana could break through the current price level again and aim for the overhead ceiling. If SOL manages to move the $44 price point, the transition to $50 will not seem too difficult. Buying power and broader market power will help Solana regain price momentum. The capitalization of the global cryptocurrency market today is $1.07 trillion. 5.1% negative change in the last 24 hours.

Solana Price Analysis: 4-Hour Chart

Solana
Solana was valued at $41 on the 4-hour chart | Source: SOLUSD on TradingView
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At the time of writing, SOL is trading at $41. The bulls lost momentum once the price hit the $46 mark. Upper resistance for Solana was at $48, a move above which could help Solana touch $50 and even rise above that level.

A drop from the current price point ensures that SOL touches the $38 mark and then touches the $30 support line. If buying power maintains momentum, SOL could fluctuate in the same price area before attempting to rise further. The volume of SOL has increased, which means that buying power is growing, which may indicate a recovery on the 4-hour chart.

Technical analysis

Solana
Solana showed negative purchasing power on the 4-hour chart | Source: SOLUSD on TradingView

The purchasing power of the altcoin remained low, the sellers dominated the price movement on the chart. Accordingly, the relative strength index showed the same emotion. The RSI was shown below the middle line, which meant that purchasing power was decreasing.

Although the number of buyers declined, the indicator noted an increase that can be considered bullish. The price of SOL was below the 20-SMA, indicating that short-term sellers were in control of the price momentum. However, Solana was above the 50-SMA and 200-SMA, which meant that the bullish move could see a rebound.

Suggested literature | Solana adds 70% more shine – can SOL retain light?

Solana
Solana made a sell signal on the 4-hour chart | Source: SOLUSD on TradingView

SOL recorded a drop in purchasing power, giving a sell signal. The Awesome Oscillator displays price direction and momentum along trend reversals. AO has formed red sell signal bars, which are a sell signal for the asset.

The Parbolic SAR also indicates price direction, dotted lines above the candle signify price direction was negative at the time of writing. For Solana to move up, the buying power must increase on the chart.

| Solana and Avalanche ready for profit as crypto market enjoys new tailwind

Featured image from The Financial Express, chart from TradingView.com



Credit : www.newsbtc.com

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