SOL/USD has displayed additional nervous selling the past day, which has added fuel to potential nervous speculative elements as the cryptocurrency slumps short term.
SOL/USD is traversing near the 94.000 ratio as of this writing. Lows near 90.7500 were displayed over the weekend. While short term bullish traders who have sought quick hitting reversals higher may be impressed with the gains, the actual move higher from this weekend’s depths is not exactly impressive. Little has been done to change the nervous trading sentiment which has again been stirred in SOL/USD.
Solana is moving in correlation with the broad cryptocurrency market. After suffering a vast amount of selling starting on the 21st of January, SOL/USD has been able to revive itself from the depths of nearly 80.0000 reached on the 24th of January. However, Solana, like its major counterparts, has not been able to clearly break through resistance levels which would proclaim the end of it mid-term bearish trend.
On the 7th of February SOL/USD attained a high of approximately 122.0000, which challenged prices last seen on the 21st of January. Technically that resistance level and failure to puncture it higher may be spooking traders, who still can see an incremental decline as the dominant feature on one and three month charts. While SOL/USD certainly was able to bounce higher from its lows of January, the move higher may be starting to fuel the notion that a false rally may have been exhibited.
SOL/USD is in an important technical position and it is hovering over crucial support levels. The price action in Solana the past week has certainly shown signs of headwinds and incremental lower depths being hit technically. The notion that other major cryptocurrencies are also being pushed backwards could trouble bullish traders. While some speculators may perceive the current price ratios as buying opportunities because they believe SOL/USD is oversold, they should practice their risk taking tactics carefully and make sure stop loss protection is working.
Traders who want to pursue downward momentum in SOL/USD in the short term cannot be blamed. Skeptical speculators who believe further declines will be seen, and want to target nearby support may be making the logical wager, by igniting their short positions when slightly higher reversals have been displayed. If SOL/USD begins to challenge the 93.0000 and 92.0000 price ratios in the short term, this could be perceived as a bearish signal which could spark more selling pressure.
Solana Short-Term Outlook
Current Resistance: 97.6000
Current Support: 91.8500
High Target: 104.7500
Low Target: 87.1000
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