Solana experienced a decline on Monday, dropping to a three-day low amid massive sell-offs. Trading action during this session is one that many won’t soon forget, as there were no clear fundamentals to blame for the bearish actions.
Nonetheless, many claimed it was due to market manipulation, pointing to some exchanges as the reason for the price drop. Either way, the dip happened, and the coin is grappling with its effects.
Solana is trading significantly higher than it started on Tuesday, boosting optimism across the Solana ecosystem. This comes after it retraced to a low of $185 earlier but rebounded. The coin is over 4% higher than its opening price, and current activity suggests that it is experiencing a notable amount of buying pressure amid a 30% decline in trading volume over the last 24 hours.
Nonetheless, the current price indicates that the bulls’ appetite for more price increases has returned. It is worth noting that, before the significant decline on Monday, the asset had surged higher due to high market uncertainty.
SOL gained over 2% over the weekend, with slight selling pressure and low volatility ravaging the crypto market. The coin reached a peak of $211 during this period. The bulls continued pushing prices amid notable rejections, causing prices to register a new seven-day high.
The sentiment will likely guarantee the coin’s quick recovery and attempt to reach new levels. Nonetheless, it is worth noting that one of the motivations for the bulls is institutional interest in the asset. Sharp Technology recently announced a $400 million private placement to purchase the altcoin.
Aside from Solana bulls who took the news as a buy signal, the company’s stock surged by 40% due to this exposure. More investors bought shares as they continued the growing trend of investing in companies with crypto exposure.
Solana Aims Higher
The altcoin is trading at $195 after facing slight rejections at $197. Its current price suggests that the buying momentum remains high amid the small rejections. Nonetheless, the relative strength index indicates that trading conditions have improved compared to the previous day. The metric increased from 51 to 55.
Aside from RSI, the bollinger bands suggest that the coin may see further increases in the coming days, as it bounced off a critical support level. It briefly broke below the SMA earlier but surged shortly after. A review of previous trends highlights why the rebound is significant.
Since reclaiming the middle band in early August, it has served as a level with notable demand concentration, and Solana rose to test the upper band after surging from this level. If the trend persists, this may signal an impending breakout from the bands. This will result in a surge to $220.
Interestingly, a look at the 4-hour chart shows that several indicators are also bullish. The moving average convergence divergence reveals that the 12 and 26 EMAs are converging. The positive trend may continue, progressing into divergence and signaling further price increases.
Nonetheless, the bollinger bands on this scale show that $213 will be the next price mark to watch. However, the asset saw slight rejections at the middle band. Reclaiming $200 will guarantee a surge to the highlighted mark.
