In yesterday’s trading SOL/USD tested long term price levels not sincerely tested since April of 2021, a slight reversal higher than took Solana to a short term high of nearly 30.0000.
SOL/USD continues to produce fast trading conditions. As of this writing, SOL/USD is near the 28.5000 ratio, but price action is fast as important support levels are certainly within view and are being challenged. In early trading yesterday, Solana briefly broke below the 26.0000 mark, but a reversal higher took SOL/USD actually above the 30.0000 momentarily.
Intriguingly SOL/USD remains above its price levels from February and March of 2021. While most other major cryptocurrencies are testing values with more distant time ratios, SOL/USD has not experienced a complete collapse of its price band quite yet. The ability to stay above the lower prices as last year’s over exuberance developed in the broad cryptocurrency market makes SOL/USD worthy of consideration for speculative wagers.
If a trader remains skeptical about the values of SOL/USD within the bearish trend which is being demonstrated, they may be tempted to believe lower depths await Solana. While the 26.0000 was challenged for a moment yesterday, SOL/USD could not puncture the mark lower. Current price action which shows SOL/USD above the 28.0000 could look like a value which may prove vulnerable, if more selling escalates in the broad cryptocurrency market.
Traders who have a speculative taste for adventure need to use their risk taking tactics wisely. SOL/USD moves exceptionally fast in normal times, so entry price orders are needed to make sure the fill meets expectations in the wildly volatile conditions now being experienced. If a speculators chooses to short SOL/USD near the current price ratios above 28.5000 and look for downside they cannot be blamed.
If the 28.0000 mark were to be flirted with this could set off another test of values seen yesterday. The 27.5000 to 27.2500 marks seem justifiable as targets for short sellers. If SOL/USD were to fall below the 27.0000 juncture, traders who are participating with selling positions should not get overly greedy and be willing to cash in winning trades.
SOL/USD remains a major cryptocurrency trade and its price action is fast. Under the present volatile conditions and bearish trend which has been demonstrated with plenty of force, looking for additional lower depths is the logical choice for traders willing to bet on direction. However, speculators need to understand that the broad digital asset market is producing violent results and conservative trading needs to be practiced.
Solana Short-Term Outlook
Current Resistance: 28.6800
Current Support: 27.5500
High Target: 31.0900
Low Target: 24.9600