Solana (SOL) has struggled in the past few days as investors focus on the upcoming platforms like Avalanche and Crypto.com Coin. Other cryptocurrencies that have done well recently are NFT-facing ones like Enjin Coin, Immutable X, Decentraland, and Sandbox. Solana price is trading at $215, which is about 17.75% below the highest level this month.
Like Bitcoin and other altcoins, the price of most digital currencies has dropped recently. This price action is mostly because of the fear of higher interest rates and profit-taking.
Also, the rally is taking a breather after big coins like BTC, SOL, and BNB soared to a record high. Historically, there is always a pullback whenever Bitcoin approaches a key resistance like when it approached $50,000 and $60,000.
Solana price is also chilling as investors rotate from the coin to other fast-growing platforms like CRO and AVAX. The two are hovering near their all-time high.
Still, Solana’s fundamentals are still solid. The number of DAPPs operating in Solana has jumped and the total value locked in its DeFi ecosystem has risen to more than $14 billion.
The 4H chart shows that the SOL price dropped to a low of $185 this month. This was a notable level since it was along the 50% Fibonacci retracement level. It was also in line with my colleague’s recent forecast.
Since then, it has rebounded and is slightly above the 38.2% retracement level. It is also at the same level as the 25-period and 50-period moving averages. The Relative Strength Index (RSI) has moved to the neutral level at 47.
Therefore, for now, Solana will remain in a tight range and then rebound to an all-time high at more than $265.
This post was last modified on Nov 23, 2021, 07:42 GMT 07:42