Solana has gained so much in the last few days while avoiding the media spotlights. The coin is edging close to March’s high and may be following the same route as before. However, it is not surging from $100 but $130.
Let’s examine what that price movement says about the ongoing surge. First, what are some of the reasons for the latest surge?
The entire crypto market condition changed following the hike in the probability of Donald Trump becoming the next US President. The candidate’s stance on crypto makes him for appealing to the crypto space. Hence, he has gathered a lot of support from top crypto influencers and top personalities.
The latest surge results from another event affecting the upcoming November election. The chances of Joe Biden continuing with the campaign as the Democrat flag bearer started becoming slim in the last few weeks as concerns ranging from health to other matters took the central stage.
The presidential candidate recently announced his withdrawal and endorsed his Vice, Kamala Haris. With the top contender out of the picture, Donald Trump’s chances of returning to the White House increase. As with previous events, the crypto market celebrates the latest happenings with green candles.
Another notable event in the past weeks is the ETF filings that several investment firms made. The appeal spurred notable price increases for SOL and other cryptocurrencies and a prospect of more trading volume if the approval comes.
Solana Gains 45%
Solana has been on the uptrend for more than fourteen days. It started on July 5 when it rebounded at $121 after it surged to $136. Nonetheless, it closed with gains of over 5%. It surged by the same fraction the next day.
One notable event happened on July 15 when the altcoin started trading at $147 and peaked at $160 for the first time in almost three weeks. While the hike caused small reactions from traders, the effect on the chart was huge as RSI hit its highest since May.
Two days later, following a red candle, the coin resumed its uptrend. It soon went on a four-day surge, and the trend is ongoing at the time of writing. SOL has since gained over 18% since the start of the latest burst.
However, indicators are blaring warnings in reaction to the most recent and indicating possible change in trajectory.
RSI Hits 70
The relative strength index has also been rising in connection with prices. The metric continues to show notable increases as buying volume increases. It surged from 38 at the start of the uptrend to 70 at the time of writing.
The current hike may indicate that the altcoin is nearing its peak. Although not significant, its RSI is 70.3, which means it is slightly overbought. It also means that the coin will see notable declines in the coming days traders will take profit.
Nonetheless, the moving average convergence divergence is still on the uptrend. The 12-day EMA is still climbing. It is also the same with the 26-day EMA.
The altcoin is also trading above the first pivot resistance at $173. In addition to pointing out the bullish trend present in the market, it also presents a short-term support level that the bulls may defend in the event of a trajectory change.
A slip will spell dipper lows for the coin. The pivot point at $148 is the next strong level to watch as it possesses notable demand concentration.
The Fibonacci retracement points to other key levels to watch. The altcoin is trading above the 23% Fib level at $166. The strength of the mark cannot be overemphasized as several retracements halted at this mark. THe same may take place in the coming days.
