SOL Technical Analysis – March 2022
Ever since Solana (SOL) reached its all-time high in November of 2021, the price has been declining. I dropped as low as $147 midway through December, but it managed to have a correction of 40%. There, it faced resistance at $205.
After that, the price of SOL started declining again, and it entered 2022 with bearish properties. I dropped to below $100 within a month, but it managed to find support at around $80. This was after a decline of more than 60%.
By the end of January, SOL managed to have a correction of 50%, which hinted at a possible reversal in the 4-hour chart. Nonetheless, after the price stopped at $122, it dipped once again. Throughout February, the price was very volatile and fluctuated at larger rates. However, the price was overall bearish.
Currency, the price of SOL is close to $80, having crucial support at $77. The fear and greed index is mainly dominated by fear, which could see the price declining even more. Nonetheless, the recent price movement has formed a descending wedge, meaning that the price could have a breakout as the wedge gets narrower.
Key Structures
Support
- $76
Resistance
- $90
Indicators
Moving Average
Both the 20-MA and the 50-MA lines of a 4-hour chart are currently above the price of SOL, meaning that the trend is still bearish and that the price of SOL could keep declining in the coming weeks.
The 9-EMA of a 4-hour chart, however, is below the price of Solana, indicating that the price might temporarily increase in the short run. Moreover, the EMA line could act as support to the price of SOL.
Relative Strength Index
The RSI of a 4-hour chart has stabilized recently. It went slightly below 30 to indicate that SOL was oversold, but it managed to increase and be slightly below 50. While the selling pressure is still high, it also means that there is space for the price to increase.
MACD
The MACD line of a 4-hour chart is currently above the signal line and headed above the baseline. The momentum is currently bullish in the short run, meaning that SOL may eventually retest resistance at $90.
Fibonacci
The Fibonacci retracement levels of a 4-hour chart suggest that the price of SOL retraced to the 38.2% level, where it faced resistance and continued declining. We could see the price go further down as the selling pressure remains high.
Price Prediction SOL – March 2022
Based on this technical analysis on Solana (SOL), the price of SOL may keep declining. While a correction may occur in the short run, the trend remains bearish and SOL may continue to decline. We may see SOL retest support at $76. If that level is broken, then we could see SOL go below $70 in March, other things equal. Of course, we also have to consider other market factors, such as the price movement of Bitcoin.
Latest News for SOL – Affecting Price
While the tensions between Ukraine and Russia have aggravated the crypto market at large rates, the Solana community is trying to maintain a positive attitude. People can now use Solana to make donations to Ukraine and help those in need. These recent crypto donations have really shown the power that cryptocurrencies have to make the world a better place.
Power of crypto donations🛡️
“The beauty & impact of this are that any #crypto holder can donate like 1 dollar, 1 million dollars, or 10 million dollars to this DAO, @_AidForUkraine 🇺🇦, and be sure that it will be deposited directly to the government account,”- @sergattic @CNBC pic.twitter.com/hy55y3Ko9o
— Everstake (@everstake_pool) March 11, 2022
Solana is also working on launching Solana Pay, a payment system that makes payments with Solana much more accessible. Its promising features indicate that it could boost the price of Solana in the coming months. Hence, despite the bearish trend in the longer-term trend, the price of SOL may eventually reverse the trend.
Currently, Solana pay is in the Merchant Beta phase. While it’s still in development, the SOL community is really excited about how this can affect the future of Solana. Many perceive Solana Pay as the Web 3.0 version of PayPal.
Here’s how easy payments are done with Solana Pay:
Check out the worlds first Solana Pay transaction at @featurelv at @WynnLasVegas
Making #solana history! pic.twitter.com/b2HyhTw1qo
— Remi Labs (@remilabs) March 4, 2022
Last but not least, the NFT community of Solana is constantly rising. People are using the Solana ecosystem for NFTs due to the low fees and efficient usage.