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Solana Price Slows As it Approaches its 1-Month High. Will it Break?

Solana continues uptrend with 5% gain on May 17. Will sustain the trend?

Solana (SOL) tokens

Solana is up by over 5% as it continues its three-day surge. The latest price hike is an improvement from the previous day’s move, which saw it close with no significant change in value. Nonetheless, it attained a new high, surpassing $160.

The coin is trading at $168, with its candle indicating it surged higher. The current price comes after the asset hit a brick wall at $172. This marked the first time it had attained such a level since April. Additionally, the current high suggests it will retest its April 12 peak, which the chart paints as critical.

It remains to be seen if it’ll break it. Let’s examine some evidence

News That Made the Rounds

Recently, Robinhood announced that its European customers can participate in Solana staking and receive a 5% yield. The latest move opens another avenue for its users to earn passive income on their assets while supporting the coin’s ecosystem.

The latest development on the exchange shows its commitment to gaining the trust of its European users. The announcement also impacted the asset under review, boosting their confidence.

In addition to the latest fundamentals, Solana also benefited from the massive gains the crypto market experienced on May 15. The trigger for that surge was the release of the positive CPI that hinted at the possibility of a decrease in interest rates.

All these events are taking place amidst the ‘craziest’ memecoin run. The Solana ecosystem accommodates these tokens in their thousands and takes in more daily. Most of the projects will look to offer staking opportunities on the platform, which may spark a buying frenzy.

All these highlighted factors, especially the memecoin craze, are playing in favor of the altcoin. This also makes promises of the uptrend continuation more likely.

Solana Will Gain Stability Above $170

The recently surged above $170 but retraced and is exchanging below it. The charts are hinting at a retest of this critical level.

The moving average convergence is showing signs of an impending selloff as it is still printing buy signals. Both the 12-day and 26-day EMA are on the uptrend. The latter recently resumed its ascent following a slight decrease in buying pressure.

On May 15, the coin surged above its 50-day exponential moving average. This reaffirmed the bullish trend, as it spent most of the last twenty days below. The recent uptrend also reduced the pressure on the 100-day EMA, which served as support during this period.

According to readings from the various indicators, the coin is set for more price surges. One the key levels it will attempt is the first pivot resistance at $180. Trading at $168, the altcoin must flip its one-month high at $176 to achieve this.

Nonetheless, price movement suggests that SOL sees a lot of demand concentration at $170. If that plays out this time, the bulls will accumulate around this level in anticipation of a push for the highlighted mark.

The chart also suggests that the cryptocurrency will not drop below $165 before the bullish predictions take place. The Fibonacci retracement levels has its 23% mark at $166. It means significant demand concentrations around the mark.

Gideon Geoffery