(Tony M. – FXStreet)
– Solana price continues to show congestion. A resolution of the congestive zone is likely to take place soon.
– Ten thousand wallets have experienced a loss due to the recent crypto hack that took place.
– Invalidation of the bearish thesis is a breach above $77.
Solana price shows conflicting signals
Solana price continues to show mixed signals during the 2nd trading week of August. While several cryptocurrencies have displayed bullish vengeance, the centralized smart contract token has failed to reconquer losses experienced since May 12.
Solana price currently auctions at $40.25. FXstreet’s new reporter Ekta Mourya broke the story last month that nearly $10,000 wallets had experienced fraudulent transactions amidst a hack that occurred on the Solana network. While the technicals do not hint at the short-term bias, the macro outlook remains extremely bullish, with targets well above $100.
Investors should be aware that a catalyst maker is on the cards for the Solana price. A breach above $77 could ignite significant bullish confidence with targets in the $150 zone. Said price action would result in nearly a 300% increase from the current Solana price.
In the following video, our analysts deep dive into the price action of Solana, analyzing key levels of interest in the market. – FXStreet Team
Solana price action will get boring unless one of these levels is broken
(Akash Girimath – FXStreet)
– Solana price is trading inside a symmetrical triangle with liquidity resting on either side of it.
– Although SOL came close to breaking out, it was rejected and pushed into two barriers, where it is likely to consolidate.
– A daily candlestick close below $38.22 will trigger a bearish breakout to $31.66.
Solana price shows a slow takeover of the bears after bulls managed to move the asset higher. Due to Bitcoin’s sudden sell-off, altcoins, including SOL, have taken a major hit. If the momentum does not sway in a particular direction, the so-called “Ethereum-killer” will possibly be stuck ranging within two barriers.
Solana price oscillates with no directional bias
Solana price has produced higher lows and lower highs, indicating a massive squeeze for SOL. However, the recent attempt to move higher set a lower high at $43.77 on August 8. Currently, the altcoin is trading between the $44.37 and $38.22 barriers.
Although there might be an attempt to partially recover the recent losses, the market is currently skewed toward bears. Therefore, investors should prepare for a Solana price consolidation between the aforementioned barriers followed by a breakdown of the $38.22 support level.
Doing this is likely to trigger a 17% crash in SOL, allowing it to revisit the $31.66 foothold. While this level will serve as support, there might be a sweep due to the liquidity resting below it. In a dire case, where this level is broken, Solana price might revisit the $24.52 weekly support level and, in the process, collect the sell-stop liquidity resting below the wicks formed between June 13 and June 19.
On the other hand, if Solana price manages to bounce off the $38.22 support level and breach the $47.43 hurdle, it will indicate a breakout and invalidate the bullish thesis. In such a case, SOL price could attempt to collect the buy-stop liquidity resting above the wicks formed between May 15 and May 31.
This development could see Solana price retest and perhaps sweep the $59.31 resistance level.
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