Crypto Market Down, But Solana Resurfaces: Analysis for August 8, 2024

After being dragged down by the overall crypto market decline, Solana rebounds by more than 45% in three days. Let’s take a look at the future outlook for SOL price.

Location of Solana (SOL)

As Solana reached its last identified resistance at $190, the crypto market experienced selling pressure that slowed the SOL price progression. In one week, the cryptocurrency recorded a 45% drop, bringing its price to $110. It is worth noting that this drop was fueled by poor economic results around the world, as well as significant geopolitical tensions. Interestingly, the $110 corresponded to a point of interest supported by a notable value area. This may explain the buying interest triggered at this level. Indeed, although Solana's price dipped below the $120 support, it quickly repositioned itself above this level, which seems encouraging for the future of its price.

At the time of writing, Solana is trading around $155. Buying interest in the crypto seems to be persistent. These recent fluctuations have allowed SOL to buck its short-term bearish trend. As for the crypto’s medium-long term trend, it still remains bullish although its price is barely holding on to its 50-day and 200-day moving averages. On the crypto’s momentum side, we can see that it was down before rebounding recently. This is reflected in the price of Solana itself as well as its oscillators. Naturally, all of these elements give way to renewed optimism on the crypto.

SOL/USD Price Chart DailyThe current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Assumptions for the Solana (SOL) price

• If Solana price holds above $120, we could anticipate a bullish continuation up to the $170 level, or even $190. The next resistance to consider, if the bullish movement continues, could be $205 – $210. Beyond that, we can note Solana’s all-time high at $260. At this point, this would represent an increase of over 67%.

• If Solana fails to hold above $120, we could be looking at a return to the $110 levels. The next support to consider, if the bearish move continues, would be slightly below $100. Further down, we can see the support at $86. At this point, this would represent a decline of around 45%.

Conclusion

Despite the recent fluctuations and selling pressures across the crypto market, Solana is showing signs of resilience. The medium-long term bullish trend remains intact, and buying interest remains strong. These factors contribute to renewed optimism for the crypto. However, it will be crucial to closely observe the price reaction at various key levels to confirm or deny current assumptions. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.