Solana Retreats At The $207 Limit

Solana (SOL) price has recovered from its decline despite being trapped between the moving average lines. Cryptocurrency price analysis brought by Coinidol.com.

Long-term forecast for the Solana price: bearish

On January 13, Solana fell below the $169 low, but the bulls bought the dips. However, after breaking through the 21-day SMA, the upside momentum was halted by the 50-day SMA barrier. The cryptocurrency will rise again if it breaks above the 50-day SMA. If it breaks through the 50-day SMA, Solana will regain the previous highs of $240 and $260. 

Solana is currently retreating after reaching the 50-day SMA. If the retracement pauses above the 21-day SMA, the altcoin will begin a multi-day range bound trend. 

Analysis of the Solana price indicator 

The uptrend has been stuck between the moving average lines since January 15. The cryptocurrency has been constrained by the bulls' inability to break the 50-day SMA. If the 50-day SMA is broken, the altcoin will rise. However, Solana will become less valuable if the price falls below the 21-day SMA.

Technical indicators

Key resistance levels: $220, $240, $260

Key support levels: $140, $120, $100

What is the next step for Solana?

Solana has recovered from its dip. On the 4-hour chart, the price bars are above the moving average lines, which is pushing the altcoin higher. The price of the cryptocurrency has stuck near its previous high and is now fluctuating below it again. Solana will continue to trend until the limits of the trading range are broken.

Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.