The trading price of Solana (SOL) has started coming together in an enclosed (tight) range. It shows that Solana’s volatility has started shrinking, indicating stability in the market. In case the stability is sustained in the wider market, Solana’s price may break out. However, the surge it exhibits would be for a short period.
The Volume Profile of Solana
The Volume Profile of Solana for 2022 is currently appearing to be between the range $53 of $90. If Solana keeps ending each one of its trading days at or above $53, it will keep increasing the trading price of Solana. In this particular case, it will become easier for Solana to hit the high value of $90 in the upcoming days.
Resistance for Solana
As Solana continues gaining momentum, it may soon hit a high trading price of $70. This would be the point where the bears may demonstrate strong resistance. Given the Volume Profile of Solana and how thin it is, it can be expected that the resistance by the bears may be short-lived.
Sellers May Find it Difficult to Bring Solana Under $50
The constant buying power of the Solana investors has managed to form a triangle pattern. The pattern shows that the bulls may not give up that easily in forming the trend. They will proceed with increasing their buying power and try to push SOL’s price up. They will try to push the trading price of Solana over $70.
If the bears manage to bring Solana below the triangle pattern, they will be able to put the bulls in a state of panic. However, the situation may not last for long because the bulls may retaliate with a strong buying force.
Time Cycle Perspective for Solana
The time cycle perspective for Solana shows that its price may experience a significant bullish bounce. At present, the most powerful cycle that Solana is witnessing is the 180-day cycle. Its shows that the price of Solana may continue moving in a single direction, which will be the upward movement.
Within this period, Solana was able to hit its all-time high and it is currently showing the same trend.
Stock Market is Impacting Solana
For the past 3 weeks, the entire stock market including the tech stocks had been plunging. However, the situation has changed in recent days and now, things are good for the stock markets.
This means that the investments will start coming back to the stock markets. This would uplift the confidence of the investors in tech stocks. This would help in pushing the trading prices of all major and known cryptocurrencies.
Being one of the top cryptocurrencies, Solana may benefit from the situation and may hit the $90 mark sooner than expected.