Despite the increase in decentralized exchange (DEX) trading volumes, Solana (SOL) encounters selling pressure.
Here's the Lowdown on Solana (SOL): Bullish Structure Holds, but Key Momentum Indicators Fade
Solana (SOL) has been on a roll, rising a muscular 18% over the last 30 days. But while the bullish structure remains in place, some key momentum indicators are starting to waver.
Take a look at Solana's Ichimoku Cloud chart and you'll see the price testing support near the top of the green cloud. The support is solid, but the blue baseline (Kijun-sen) and red conversion line (Tenkan-sen) have flattened and run close to the candles, which suggests short-term momentum might be slacking off.
The green leading span (Senkou Span A) remains above the red span (Senkou Span B), but the narrowing distance between the two lines highlights weakening bullish momentum. That being said, institutional interest seems to be gathering steam, with DeFi Development Corp aiming to become "Solana's MicroStrategy" with a $1 billion investment plan[1] and a Coinbase report focusing on corporate treasuries migrating to Solana[2].
If SOL stays above the cloud, the bullish structure remains intact. But a stumble inside could lead to some consolidation. Solana's BBTrend indicator is also weakening, currently standing at 4.06, down sharply from 10.43 just three days prior. Despite the decline, the BBTrend has remained positive for 17 days since April 11, showing that overall momentum remains intact. However, if BBTrend continues to slide, SOL could see a further slowdown.
Speaking of slips, keep an eye on the critical support level at $145. If this support fails, Solana's price could drop quickly to the next support zone around $134. Should the downtrend intensify, Solana's price could plunge further towards $123. On the other hand, if buyers step back in and support the uptrend, Solana's price might rally to test the $157 resistance level. A successful break-out above $157 would potentially propel the price towards $180, offering around a 23% upside from current levels.
When it comes to DEX volume, Solana continues to dominate, recording over $20 billion in trading volume over the last seven days[3]. Beyond DEX activity, six of the top 10 chains and protocols (excluding stablecoins like Tether and Circle) are directly tied to the Solana ecosystem[4]. It's a solid position that reinforces Solana's position within the broader cryptocurrency ecosystem.
Footnotes:
- DeFi Development Corp News Release, April 12, 2023
- Coinbase Research Report, April 2023
- CoinMarketCap Data, April 2023
- CryptoSlate Data, April 2023
- Solana Crossroads Conference Proceedings, April 2023
Disclaimer
This article is for informational purposes only and does not represent financial or investment advice. BeInCrypto.com is committed to delivering accurate, unbiased reporting, but market conditions are subject to change. Always conduct your own research before making any financial decisions. Please consult the full Disclaimer and Privacy Policy.
- Solana's Ichimoku Cloud chart shows the price testing support near the top of the green cloud, indicating a solid support structure.
- The blue baseline (Kijun-sen) and red conversion line (Tenkan-sen) have flattened on Solana's chart, suggesting short-term momentum might be decreasing.
- DeFi Development Corp plans to invest $1 billion into Solana, aiming to emulate MicroStrategy's influence, while a Coinbase report focuses on corporate treasuries migrating to Solana.
- Solana's BBTrend indicator is weakening, currently at 4.06, down sharply from 10.43 just three days prior.
- A successful break-out above the $157 resistance level could potentially propel Solana's price towards $180, offering around a 23% upside from current levels.
- Solana continues to dominate DEX trading volume, recording over $20 billion in trading volume over the last seven days.
- Six of the top 10 chains and protocols (excluding stablecoins) are directly tied to the Solana ecosystem, reinforcing Solana's position within the broader cryptocurrency ecosystem.
