Amid the cryptocurrency market declines, Solana’s (SOL) price maintains its upside progression.
- SOL/USD ends impulsive downside move at $19.88
- SOL upside rally continues with an extended price swing to $30.90
- Solana ecosystem sees an enormous inflow of new users
A steep selloff in the crypto market comes up as startling news at the week’s start. Despite the market meltdown, Solana (SOL) jumped sharply to reach all-time highs of $30.90. Solana has been in an impulsive downside move since Apr. 12 after it attained highs of $26.43. The downside move reached lows of $19.88 where SOL embraced support. On Apr. 18, the SOL upside rally resumes with an extended price swing to $30.90. As of press time, SOL was trading at $27.72, up 9.80% on the day and 1.06% weekly.
Solana Ecosystem Sees an Enormous Inflow of New Users
SOL price growth in April alluded to new projects conducting airdrops on the Solana blockchain. Serum, a decentralized exchange (DEX) and ecosystem built on Solana airdropped 2,000 COPE tokens to users who participated in the joint DeFi hackathon held by Solana and Serum. After the airdrop, COPE was listed on Serum for $0.50 on March 30. With the advent of COPE and the general energy around Solana and Serum, the ecosystem recorded an enormous inflow of new users.
SOL Daily Chart: Ranging
SOL is trading in the green despite the market sell-off. In early Sunday trading, SOL fell as low as $19.88, a level that is standing near the MA 50 ($18.58) before surging ahead. The SOL/USD pair tumbled in the last couple of days and slight risks remain to the downside despite today’s upward move. The RSI indicator completed a steep downside movement, however, currently is pointing slightly upwards. On the upside, if SOL price surpasses $30.90, it could move towards the $31.50 barrier.
A break above these levels could take SOL price towards $33 and $36. Remaining in the same timeframe, the bearish scenario could come into play if Solana trades below the recent lows of $19.44. A slip below that level could open the door for the strong support barrier at $18.58 (MA 50). Further declines would expose the support at $12.42 (Mar. 25 low) and $11.27.
SOL/USD 4 Hour Chart: Ranging
Solana kickstarted a strong rebound near the 4-hour MA 200 ($20.58) on Apr. 18. The recent upsurge to highs of $30.90, however, appears to be an upside correction in the downward pattern that started from Apr. 12 high of near $30. The RSI is slightly pointing upwards above the 50 neutral marks after forcefully rebounding from the oversold area. A decisive close above the restrictive MA 50 ($26.71) and the high at $30.90 could generate additional gains towards the $31.50 barrier. A steeper increase could bring the $33 and $36 levels next into view, though only a rally above the MA 50 ($26.71) would eliminate fears of a down-trending market.
In the event sellers manage to sustain SOL price below the MA 50, the door would open for the next support at $24.89. A break lower could extend towards a retest of support at the MA 200 ($20.58) where the bulls may give the upswing another chance. Summarizing, Solana (SOL) has recouped some lost ground, though the downside risks regarding the price momentum and the market trend remain unless SOL price maintains its climb above the MA 50.
Key Levels
Resistance Levels: $36.00, $33.00, $30.97
Support Levels: $20.00, $18.21, $16.87
Image Credit: Tradingview
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Source: https://coinpedia.org/price-analysis/solana-price-analysis-sol-usd-withstands-downside-pressure/
