Solana soared in double digits over the last 48 hours. The coin touched the $43 mark before it started to retrace on its chart again. In the last 24 hours, SOL just lost 0.1% of it value and stuck to its bullish price action.
Owing to its recent development, Solana has displayed a price rally. Technical outlook of SOL was also bullish at press time.
The altcoin witnessed an increase in buying strength. This has been influential in driving the price up. Solana has opened up permanent retail space in Manhattan.
These stores are specifically dedicated to all things related to cryptocurrencies.
Solana Spaces, CEO Vibhu Norby also mentioned that these physical Solana retail stores have an intention to introduce approximately 100,000 people each month to the Solana ecosystem.
He also hinted that there are possibilities to open a virtual storefront soon in the future. A grant from the Solana Foundation has helped the Solana Spaces to set up a shop in Hudson Yards New York.
Solana Price Analysis: Four Hour Chart
SOL was trading at $42 at the time of writing. The altcoin was finally able to break past the $40 price level. Overhead resistance for the coin stood at $47. SOL has struggled to move past that price zone for couple of weeks now.
For Solana to continue its bullish momentum, it has to trade above the $43 price ceiling level for a substantial period of time.
Nearest support line for the coin was at $40 and $38. If the coin loses the $38 price floor, the next support line awaits the altcoin at $36.
Trading volume of Solana registered a small decline which indicated that selling pressure might have been on the rise.
SOL had just touched the overbought price zone, however, as price gently moved south so did buying strength. Although there has been a fall in buyers, buying strength remained higher than selling strength at the time of writing.
The Relative Strength Index was slightly below the 60-mark which meant that buyers exceeded sellers on the chart. The price of SOL was above the 20-SMA line, the reading indicated that buyers were driving the price momentum on the chart. SOL was also above the 50-SMA and 200-SMA line, that indicated bullish force in the market.
The altcoin reflected increased buying pressure on other indicators as well. Moving Average Convergence Divergence pictures price momentum and change in the same. MACD underwent bullish crossover and presented green signal bars which are tied to buy signals for the altcoin.
Bollinger Bands depict price volatility and fluctuations in the same. The bands have opened up wide which indicated that price of the altcoin could experience further volatility. For SOL to maintain its bullish stance, buying pressure and broader market strength will be necessary.
Related Reading | Bitcoin Breaks $24k As Exchange Whale Ratio Declines
Featured image from LeewayHertz, chart from TradingView.com