SOL Technical Analysis – February 2022
The price of Solana (SOL) reached its all-time high in November of 2021 at $260. After that, the price entered into a bearish run and has kept declining ever since. Of course, there were plenty of corrections toward its path down, but the overall price of SOL remains bearish. The price of SOl has declined by around 70% ever since it hit its all-time high.
Solana has recently found support at $81. This support proved to be strong enough and was followed by a consolidation phase. Nonetheless, the price managed to increase after that by around 50%. This hinted at a possible reversal, but the price faced strong resistance at $122.
Solana is now retracing and is declining. Nonetheless, the daily candlestick suggests bullish tendencies, despite the bearish trend. If SOL could find support soon and have a higher low than the previous one, then we could eventually see a higher high. This would mean that the trend could reverse for SOL. Nonetheless, the fear and greed index among other indicators suggests that the price of SOL is bearish for the coming days. Both channel lines have proved to be strong structures of support and resistance in the last few months, suggesting that this channel might continue for SOL, other things equal.
Both the 20-MA and the 50-MA of a 1-day chart are quite above the price of SOL, indicating that the trend is bearish and that the price of SOL could keep declining in the coming weeks.
The 9-EMA of a 1-day chart is also above the current price of SOL, suggesting that the EMA line could act as resistance and that the price is bearish in the short run.
Relative Strength Index
The RSI of a 1-day chart shows that it was recently below 30, making SOL oversold. After that, the price had an anticipated increase, moving the RSI up to 50. The RSI declined again after that, and it is currently bearish. Nonetheless, it also means that there is room for growth for Solana.
The MACD line of a 1-day chart is currently above the signal line but below the baseline, indicating that SOL might not have that bullish momentum just yet. Furthermore, the lines are now converging, and the momentum could shift into a bearish one really soon.
The Fibonacci retracement levels of a 1-day chart suggest that the price of SOL retraced back to the 50% level in this current downward movement. While 50% is not a widely recognized level of retracement, it has proved to be accurate enough in many occasions used by technical analysts. Since SOL faced resistance at 50%, the price could go further down in the coming days.
Price Prediction SOL – February 2022
Based on this technical analysis on Solana (SOL), the price of SOL could keep declining in the coming days. While the daily candlestick is showing bullish signs for the short run, the trend is still bearish. Indicators also suggest that the price could keep declining. Other things equal, the price of SOL could go below $50 in the coming weeks.
However, taking into account the price of BTC and other market factors, Solana could also reverse the trend. Since it may aim to break resistance at $122 due to the recent higher low, SOL could eventually break that structure and aim higher. If that occurs, then a price of $160 is realistic for SOL in February.
Latest News for SOL – Affecting Price
While Solana has not reached the heights of Ethereum just yet, it certainly had quite a year in 2021. With its fast transactions and ever-growing ecosystem, developers are moving into Solana.
With that in mind, a lot of NFT projects have been launched in Solana. Some of them have proven to be quite successful and have ultimately increased the demand for SOL. the more these projects develop, the higher the price of SOL goes.
Some of the most dominant NFT projects in Solana include Portals, LUX VR, MonkeLabs, etc.
Top 10 Solana NFTs | Ranked by 24hr Volume
Data – @MagicEden_NFT pic.twitter.com/EpE5d5hkOk
— Purple Analysis (@PurpleAnalysis) February 9, 2022
Recently, Portals raised $5 million in seed funding. This amount is presumably enough to fund this metaverse-based project. Moreover, this also shows the commitment and the support that these NFT projects are getting in the Solana ecosystem, despite the criticism that the Solana network got due to its previous outages.