- Solana has been down 3.51% in the last 24 hours.
- SOL may soar to a high of $78 if the $58.80 wall is breached.
It’s hard to tell how much longer this consolidation will last since a positive side effect of tightening supply increases price volatility. Solana is poised for a huge price change even as the cryptocurrency industry suffers from Terra’s tailspin.
Bulls Trying to Dominate
One of May’s lowest-performing cryptocurrencies was Solana. The first 12 days of the month showed a 60% reduction in pricing for Layer 1 blockchain. It has recovered more than 40% from its swing low of $36.20, but SOL remains in a consolidation pattern that predicts greater volatility in the near future. However, it has broken the $50 psychological barrier.
On the hourly chart, the price of Solana has formed an upward triangle since May 11. An apparent horizontal resistance trend line has formed at $58.80 on the series of swing highs, while a rising trend line has formed on the series of swing lows. Breakouts may occur both up and down from this kind of technical setup.
This means that SOL is likely to have a strong correction due to the lack of trade activity in cryptocurrency exchanges. This might cause Layer 1’s price to go as low as $44 or even $40. A positive bias is understandable given the size of Solana’s losses in the last month. The commencement of a bullish trend can only be signaled by a sustained hourly closing above the $58.80 resistance level.
Solana may soar to a high of $78 if such a critical supply wall is breached. According to CMC, the Solana price today is $50.61 USD with a 24-hour trading volume of $1,821,724,558 USD. Solana has been down 3.51% in the last 24 hours.