Solana Stays Strong While Bitcoin and Ethereum Decline
Solana made an attempt to settle above all-time highs today despite the pullback in leading cryptocurrencies. Bitcoin is currently trying to settle below the psychologically important $60,000 level. In case this attempt is successful, it will gain additional downside momentum and move towards the 20 EMA at $57,700 which will be bearish for the whole crypto market. Meanwhile, Ethereum managed to get back below the $4,000 level and is trying to settle below $3,900.
It remains to be seen whether the sell-off in biggest coins will have any notable impact on Solana as the latter’s upside momentum is very strong. According to CoinMarketCap, the recent rally has put Solana into the top-6 cryptocurrencies by market capitalization with a market cap of about $61 billion at the time of writing.
Solana managed to settle above the $200 level and is currently trying to settle above the resistance at $216. Trading volume has increased materially in recent days, but it has not reached peaks that were seen back in September when Solana was trading near current levels. Thus, Solana may enjoy even more active trading which could push it to new highs.
It should be noted that RSI has just entered into the overbought territory, but it remains well below highs that were seen back in August – September, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
In case Solana manages to settle above $216, it will gain additional upside momentum and move into the uncharted territory.
On the support side, the previous resistance near $200 will serve as the first support level for Solana. A move below this level will push Solana towards the support at $178. In case Solana declines below $178, it will head towards the next support which is located at the 20 EMA at $164.
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