After hitting a high of nearly 143.4000 on the 2nd of April, which tested highs not seen since the 20th of January, SOL/USD has taken on a rather stark bearish trend. Technical traders will certainly have their perceptions tested in the short term with Solana. The ability to hit important resistance levels in early April, and then be pushed backwards with a rather stark amount of violence likely has had an effect on speculative bulls.
As of this writing, SOL/USD is near the 106.6000 mark in fast conditions. A low of nearly 98.2000 was produced on the 11th of April and some reversals higher have been witnessed. Incrementally SOL/USD has also seen short term support levels rise. The question is if the current three day move higher can be sustained, or if it will prove to be a ‘dead cat’ bounce. The long term bearish trend of SOL/USD seemed likely to be proclaimed over in early April, but the resurgence of downward motion cannot be discounted and nervous fears may be building again.
Lows seen only a few days ago tested important support levels which did seem to hold via pricing comparisons of late March. The current value range of SOL/USD will need to prove strong in order to attract additional buying waves, beyond the scope of mere day traders looking to capture quick hitting moves higher. The broad cryptocurrency market appears to be awash in nervous sentiment and if current support levels among Solana counterparts start to look vulnerable, this could be a poor signal for SOL/USD too.
Buying of SOL/USD certainly moved in step with the broad cryptocurrency market during its positive run from the middle of March until early April. However, the price action downward in SOL/USD has actually been more violent compared to the likes of Ethereum and Bitcoin when percentage changes to value are gauged. SOL/USD lost more than 40% of its value from early April until lows were hit on the 11th.
If current support levels prove durable and values near the 107.0000 to 106.0000 ratios can hold back the negative tide recently displayed, this may allow speculators to believe upside potential lurks. However before conservative traders step into SOL/USD with buying wagers, they may want to see some consolidation over the next day or so. Looking for upside when support is approached may prove to be worthwhile, but for the moment traders may want to keep their price ambitions when looking for upside action rather tame and their stop loss orders working.
Solana Short-Term Outlook
Current Resistance: 107.8700
Current Support: 105.2200
High Target: 110.3500
Low Target: 96.1000
