Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. The Solana protocol is designed to facilitate decentralized app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.

Because of the innovative hybrid consensus model, Solana enjoys interest from small-time traders and institutional traders alike. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.

SOL has been showing some interesting technical analysis moves.
<h2><b>Past Performance of SOL</b></h2>
SOL has been a <a href="https://www.cryptoknowmics.com/news/sol-technical-analysis-the-market-begins-to-correct/">winner</a> since the last few months and this year has seen one of its best returns. It has crossed all the previously predicted resistances of $133, $ 152 to finally settle at $200 levels. It has seen a little downward movement having fallen 0.7 percent today.

<img class="tv-snapshot-image" src="https://s3.tradingview.com/snapshots/n/npQtoRRz.png" alt="TradingView Chart" />

Source: <a href="https://www.tradingview.com/x/npQtoRRz/">https://www.tradingview.com/x/npQtoRRz/</a>
<h2><b>SOL Technical Analysis</b></h2>
The target for SOL in a few days remains at $220. One should keep invested and wait for new resistances to be breached.

The <b>On-balance Volume</b> is at 31.89 million, which is above the average volumes it has surpassed so far. Yet it is running flat indicating a slow movement towards the sky.

<b>RSI</b> is sitting comfortably in a neutral zone of 50 percent showing a low to laggard interest for a day or so.

The MA trend and signal lines both are running parallel in a downwards trend indicating a short-term pain for traders.

Currently the world’s fifth-largest cryptocurrency with a market capitalization exceeding $62 billion, SOL has had a remarkable ascent in 2021. Having entered the year trading at less than $2, it hit an all-time high of $260 in early November, and now trading just north of $200, it is a boon for investors.
<h2><b>Price Trends for the Day-Ahead and Tomorrow</b></h2>
While SOL has been doing really well, the current sentiment for next few days per oscillators and averages is to SELL. This also presents a signal to book profit if you have been holding it for a while. One can lookout for a support level of $155.389 but the pivot should be around $186.419. As of now SOL seems to be in a bit of a downswing to the 50 percent retracement level at $203 levels.

In some cases, the downswing could extend to the 62 percent or 70.5 percent Fibonacci retracement levels at $198 or $192. The famous “Ethereum- killer” could move upto $221 if it crosses the resistance levels..

A double top formation is being seen above $230 levels, one can book profits even then.

SOL Technical Analysis: Stay Invested-Short-term Pain for Long-term Gains

SOL has been doing really well, the current sentiment for next few days per oscillators and averages is to SELL. This also presents a signal to book profit if you have been holding it for a while. One can lookout for a support level of $155.389 but the pivot should be around $186.419. As of now SOL seems to be in a bit of a downswing to the 50% retracement level at $203 levels. 

Ankita is reading geek by birth, she loves to read and write about finance and now cryptocurrencies and blockchain since 2017. A Bitcoin enthusiast ever since, she likes to understand businesses and how they affect everything else. Ankita contributes on our news bulletin with the latest happening in blockchain, crypto and ICO market specifically.

SOL Technical Analysis: Stay Invested-Short-term Pain for Long-term Gains

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