SOL Rebounds By 30% As Buyers Reclaim $30 SupportSolana surged by a very strong 30% over the past 24 hours of trading as it reclaims the $30 handle. The cryptocurrency has been falling since hitting resistance at $42.50 in early June and spiked as low as $20 in yesterday’s market crash.
The recovery has been quite impressive for SOL and is currently the strongest performing top-50 ranked cryptocurrency today.
Founded in 2017 by Anatoly Yakovenko, Solana is a decentralized blockchain with a very high throughput that launched its Mainnet in Q3 2019. It is a highly scalable smart contract blockchain that uses proof of history to verify the ordering and passage of time between events. To put the scalability of Solana into perspective, the blockchain can currently handle well over 1000 transactions per second. The team claims that the blockchain can handle up to 50,000 TPS when under full load. Solana is certainly a strong competitor when measured up against Ethereum 25 TPS under full load.
SOL has seen an interesting week on the fundamental side. At the start of the week, Coinbase announced that they added Solana to its currency exchange. The addition included SOL into the Android and iOS apps, allowing their mainstream audience to invest in the product.
Additionally, the Grayscale Investment firm announced that they were also considering adding Solana (SOL) to their family of products. It is currently under consideration but, if added, the firm would make an SOL-based trust to allow institutional investors to easily enter into the altcoin.
Solana is now ranked in the 14th position as it currently holds an $8.4 billion market cap value.
SOL Price Analysis
What has been going on?
Taking a look at the daily chart above, we can clearly see SOL hitting resistance around $42.50 at the start of June. The coin was unable to break this resistance and ended up creating a range between $42.50 and $35 over the following two weeks.
The trading range was eventually penetrated on Monday when SOL slipped beneath the 100-day MA at $32.50 and continued lower to hit support at $27.
Yesterday, the brief BTC drop beneath $30K caused SOL to be dragged as low as $20. However, it quickly recovered from there and ended up closing the daily candle at $27.
Today, SOL continued to surge higher as it broke back above $30 to hit $30.50.
Solana price short term prediction: NEUTRAL
The drop beneath the 100-day MA has turned SOL neutral in the short term. It would now need to rise above the June resistance at $42.50 to turn bullish again. On the other side, a drop beneath $20 (200-day MA) would certainly turn SOL bearish in the short term.
If the sellers push lower, the first support is expected at $30. This is followed by $27, $25, $21.65 (.786 Fib Retracement), and $20 (200-day MA).
If the bearish pressure continues to cause SOL to fall beneath $20, added support is located at $17.30 (.886 Fib Retracement), $17, $15, and $13.64 (downside 1.272 Fib Extension).
Where Is The Resistance Toward The Upside?
On the other side, the first resistance lies at $32.50 (100-day MA). This is followed by $34.12 (bearish .382 Fib Retracement), $35 (20-day MA), $37.50 (50-day MA), and $28.75 (bearish .5 Fib Retracement).
Additional resistance is then expected at $40, $42.50 (June resistance), $43.40 (bearish .618 Fib Retracement), and $45.
