Like the rest of the crypto market, Solana (SOL) price movement is dull and uneventful. Looking at the price charts, the path of least resistance from a top-down preview is northwards. Days after SOL broke above $30, testing $32 and registering new 2023 highs, the coin has fallen 27% to spot rates. However, traders are optimistic provided prices trend above $20, the immediate support level.
Overall, if buyers hold this level, the uptrend remains, and there could be a chance for growth above $25. As it is, traders are looking at fundamental factors for a spark that could ignite demand, lifting SOL’s demand and trading volumes.
Looking at Bitcoin while NFT and DeFi activities drop
The direct correlation between Bitcoin and altcoins, including Solana, might help revive the crypto market from the current lull. Among the top beneficiaries will be SOL.
Traders are looking at the upcoming halving and the possible approval of a spot Bitcoin exchange-traded fund (ETF) as potential triggers. Approval will be a stamp of legitimacy to the space, which could prop SOL in the medium to long term.
Still, the stagnation across the decentralized finance (DeFi) and non-fungible token (NFT) markets is of no help. DeFi’s total value locked (TVL) is below $50 billion, and most activity is concentrated on Ethereum, with Solana suffering after network halts and FTX’s collapse last year. Like DeFi, NFT activities are also dropping, heaping pressure on SOL as demand drops.
Solana (SOL) Price Analysis
SOL remains in an uptrend despite the sideways movement. Notably, from the daily chart, prices move inside a $4 zone with caps between $22 and around the $25/26 resistance level.
Since prices are consolidating and rejecting bear attempts, aggressive traders can look to buy on dips above $22. This support level is around the 61.8% Fibonacci retracement level of the June to July 2023 trade range.
Therefore, if buyers take charge, prices may break above $25/26, allowing bulls to ramp up, targeting July 2023 highs at $32 in a buy-trend continuation.
Conversely, any dump below primary support may open SOL for $18, the 78.6% Fibonacci retracement level. The bullish outlook will be null if the drop has relatively high trading volumes.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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