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Solana Drops, and This Is a Key Determinant for Its Recovery; Details

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Wed, 02/09/2022 - 12:07
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Tomiwabold Olajide
Here is a key determinant for Solana's recovery as price dips
Solana Drops, and This Is a Key Determinant for Its Recovery; Details
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According to a Crypto analyst, a comeback of buyers for Solana might result in a retest of a significant barrier on the four-hour chart. Solana's price dropped 4.52% in the previous 24 hours, currently trading at $111.

CoinMarketCap
SOL/USD Daily Chart, Source: TradingView

After rising from lows of $80.83 on Jan. 24, Solana experienced a modest reversal of the overall decline. Despite this, the upswing was considerable, but it was halted by a stiff resistance barrier around $118, causing a pullback. To reach $140, the crypto analyst believes SOL must print a sustained close above this resistance level.

Solana price action

Over the last three trading days, the price of Solana has been under constant positive pressure. As a result, buyers are gradually pushing SOL upward. SOL has recently risen to highs near $121, reducing its year-to-date losses.

A break of the $118 barrier might lead to greater gains. This time, investors should expect the price of Solana to pierce through and retest the next barrier, which is currently $140. Although the $110 support level appears to be holding, a break could result in a retest of the $94 level.

Solana stunned everyone in 2021 with its lightning-fast transaction speeds and low pricing. Solana was able to become one of the main blockchain support builders in the crypto market almost overnight as a result of this. Solana's value soared by thousands of percent, propelling it into the top 10 coins in terms of market capitalization. Solana Network has struggled to keep up with its rapid growth. This has been seen by recent network outages.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.