As of this morning, SOL/USD is trading slightly under the 106.0000 juncture after experiencing a strong jump higher in values. Solana is still within the lower realms of its price range, but traders who enjoy speculating on SOL/USD are likely attracted to its volatility which often seems to be proactive instead of reactive in the cryptocurrency marketplace. Yes, SOL/USD correlates to the broad market results of its major counterparts, but it may actually be one of the digital assets that lead the parade.
After touching a low of nearly 89.0000 on Sunday morning, ADA/USD began to see price action reverse higher, and by the end of the day Solana was challenging short-term resistance not touched since the 22nd of January. This date is significant because it is essentially when a strong selloff in the broad cryptocurrency market took place causing an astonishing amount of losses. Like today’s gains made by SOL/USD, Solana demonstrated sharp losses when the market tumbled and on the 24th of January it was priced near 79.0000.
SOL/USD is the 7th ranked cryptocurrency regarding market capitalization. The price action in SOL/USD should be watched closely by speculators because if may offer clues regarding behavioral sentiment which could develop. If SOL/USD is able to display additional upside price action in the near term it may cause a sliver of optimistic sentiment in a marketplace which has been nervous for a long time.
However, SOL/USD does remain within the depths of a long established bearish trend. While speculators who are bullish will certainly welcome this morning’s early results, they also need to stay realistic and wonder if the rally will prove to be short lived. If buyers are aiming for higher values they should stay realistic and not look for overly ambitious returns. If the 106.5000 level above can be toppled, traders may look for the 107.0000 ratio as a quick hitting target.
Bearish traders who monitor Solana may believe the move higher late yesterday and early today are actual opportunities too. If headwinds become strong in SOL/USD sellers may look to sell the cryptocurrency and expect that further downside action is going to develop. Traders cannot be blamed for doubting the upwards movement seen the past day, but they should use adequate stop losses to make sure they are guarding their trading accounts in case another spike higher is suddenly witnessed.
Solana Short-Term Outlook
Current Resistance: 107.2500
Current Support: 98.7500
High Target: 113.9000
Low Target: 85.2500
