Saturday, October 1

Solana could see a new ATH, but first she must correct

The cryptocurrency market is on the rise, although Bitcoin has taken a large part of the prominence. This means that a large capital of the market is currently in BTC, and it will surely continue to migrate for a few more days. As this happens, some of the major altcoins will see a considerable drop, in addition to corrections and lateral trends; Among them, Solana, Ethereum or others stand out.

Therefore, it is one of the main aspects to consider at all times when analyzing Solana’s behavior. Also, at the time of writing it is listed at $ 197.96. It registers a loss of 3.17% in the last 24 hours and a gain of 24.28% in the last 7 days according to CoinMarketCap.

What could be holding back Solana’s rise?

Right now one of the aspects that is stopping Solana is the amount of money that is migrating from altcoins to Bitcoin; aspect that not only affects SOL. This in short means that during the days when BTC tests its ATH the altcoins will remain bearish.

Even so, we can see how the Ethereum competition continues to gain ground in the market, and shows its full potential after the latest announcements that have been made via Twitter; where you can clearly see the evolution that is taking place in the DeFi sector.

Due to the growth of recent months, we can say that it is one of the altcoins with the highest upside potential. However, it is expected that it will respect its current resistances and correct, as the market situation is favorable for Bitcoin, so, it is certain that BTC will capitalize on the gains of the altcoins.

Short-term technical analysis

During the day yesterday Solana reached an important resistance, which if it were overcome it would allow the registration of a new ATH. However, as I mentioned before, money is currently migrating from altcoins to Bitcoin, which would lead to a prolonged drop over the next few days in various cryptocurrencies.

RSI and ENV channels: both show clear bearish signals. The RSI is located in overbought and bearish territories after marking a double top, and the ENV channels suggest a correction, as the candles did not respect the upper margins; in addition to marking important supports; the first of them located at $ 196 and the second at $ 190.

The first is being tested at the moment; and it has been rejected by the bulls for the past few hours, so we are likely to see a rally to the resistance located at $ 210.

There we would expect a new profit taking by the traders, which would lead us to the aforementioned supports.

Solana analysis in 4-hour timeframe
Solana analysis in 4-hour timeframe. Source: TradingView.

The correction could drag on for a few days until reaching the last support; located at USD 175-170. From there the bulls should start to take control and push Solana’s price to the nearest resistance; unless there is more pressure to sell.

The information in this content should be taken for informational purposes only, not intending under any point of view to urge the purchase / sale of financial assets.