Solana (SOL) Technical Analysis 2021 for Crypto Traders

Solana (SOL) Technical Analysis 2021 for Crypto Traders

In Solana (SOL) Technical Analysis 2021, we use past statistics, price analysis, RSI, RVOL, and much other information about SOL to analyze the future movement of the cryptocurrency. 

Solana is a powerful open source project built on the unauthorized nature of blockchain technology to provide decentralized finance (DeFi) solutions. Although the idea and the first project work began in 2017, Solana was officially launched by the Solana Foundation in March 2020. Headquartered in Geneva, Switzerland. It aims to improve scalability by using Proof-of-History (PoH) consensus and basic Proof-of-Stake (PoS) block consensus.

Solana (SOL) Current Market Status

According to CoinGecko, the SOL price is trading at $34.93 with a 24-hour trading volume of $546,813,703, at the time of writing. However, SOL has increased by 8.6% in the last 24 hours. 

In addition, SOL has a circulating supply of 272,637,122 SOL. Currently, SOL trades in Binance, OKEx, Huobi Global, and Bilaxy.

Solana (SOL) Technical Analysis 2021 

Solana (SOL) holds the 13th position on CoinGecko right now. The recent development and upgrades might push SOL to reach new heights. Now, let’s deep dive into the SOL technical analysis 2021. The weekly time frame chart of Solana (SOL) is shown below.

SOL/USDT Rising Wedge pattern (Source: Tradingview)

The above chart forms the “Rising Wedge pattern”. This pattern is a bearish  pattern that starts wide at the bottom and contracts as trading range narrows and the prices move higher. It indicates a slowdown in momentum, usually before a bearish reversal, which means that traders can spot potential selling opportunities.

SOL trades in a range of $33.9. If the price breaks the trend line support level of $18.5 then it will lead to a further drop up to the $1.12 Level. If the pattern continues to the top side, then it will reach the $80 level soon.

Solana (SOL) RSI

The below chart shows the relative strength index (RSI) of SOL. 

SOL RSI (Source: TradingView)

As shown in the below chart, RSI remains at 51. This shows that SOL’s price is in a neither overbought nor oversold state. However, this shows that traders can trade fearlessly.

Solana (SOL) RVOL

The below chart shows the Relative Volume of SOL. RVOL is an indicator that tells traders how the current trading volume has changed over a period of time compared to the previous trading volume.

SOL RVOL(Source: TradingView)

Notably, in the mid May to third week of June, it is found that the RVOL of SOL observed is stronger. From the last week of June till at the time of writing, the RVOL of SOL stays below the cutoff line which indicates the weaker participants in the current trend.

Solana (SOL) Moving Average

SOL’s Moving Average (MA) is shown in the chart below. Moving Average is a part of technical analysis that helps traders to find trends.

SOL MA (Source: TradingView)

In the 50 MA (Short-term), the price of the SOL is in a bearish state, and still, it has not broken the 200 MA. Once it breaks the 200 MA level of SOL , it completely goes to a bearish state.

Currently, the price of SOL is trading near to the 200 MA level so we can expect some reversal at these points.

Solana (SOL) Price Comparison With Bitcoin

The below chart shows the price comparison between SOL and BTC. 

SOL vs BTC Price Comparison chart(Source: TradingView)

The trend of the BTC and SOL is moving at the same level as the trend.

Conclusion

With the ongoing developments and upgrades that are taking place within the SOL platform. Solana has a great future ahead in this crypto market. However, SOL can reach new heights.

Bullish SOL price prediction 2021 is $80. As mentioned above, it may reach great heights, however reaching $117, if investors have decided that SOL is a good investment in 2021.

FAQ

What is SOL?

SOL is a fast, secure, and censorship-resistant blockchain that provides the open infrastructure required for global adoption. Its native coin is Solana.

Where can you purchase SOL?

SOL is listed on many cryptocurrency exchanges that include Binance, OKEx, Huobi Global, and Bilaxy. It is available for trading against crypto fiat coins, stablecoins, and other cryptocurrencies.

Will SOL reach a new ATH soon?

With the ongoing developments and upgrades within the SOL platform, it has the high possibility of reaching its ATH soon.

Disclaimer: The opinion expressed in this chart solely author’s. It does not interpreted as investment advice. TheNewsCrypto team encourages all to do their own research before investing.

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Monisha is a Senior Programmer in the Automotive Embedded domain. Her interest in the cryptocurrency field made her write about crypto and blockchain-related news.