SOL/USD created fresh short term lows on Saturday, as Solana has largely mirrored nervous sentiment being generated in the broad cryptocurrency marketplace.
SOL/USD is traversing above 95.0000 as of this writing. Saturday’s lows in Solana did fall below 86.0000 and flirted with values not seen since the 27th of January. SOL/USD correlated with the broad cryptocurrency market over the weekend, its reversal higher yesterday and this morning likely remains under suspicion from technical traders who may remain skeptical about Solana’s ability to extend a strong move higher.
Current resistance near the 96.5000 level could prove to be interesting and a challenge of 97.0000 may be seen short term if market volatility remains ripe. However, any move higher may be viewed by bearish traders as an opportunity to look for turns lower again by SOL/USD. If Solana falters short term and the 95.0000 level proves vulnerable, speculators may believe the 94.0000 to 93.0000 levels will be retested rather quickly.
Solana remains volatile and its trading volume has not been huge over the weekend, which means its move lower on Saturday may not have happened via panic selling. This could be a signal additional lower values may actually be flirted with by SOL/USD. The broad cryptocurrency market is showing a sea of nervousness and lower values have been viewed across the cryptocurrency world. However, SOL/USD has not sunk to its lowest depths seen in January. And yesterday’s reversal higher is a wildcard that needs to be considered too.
Technically, if nervous selling continues to find momentum SOL/USD may have further room to traverse lower. On the 24th of January SOL/USD did test values below the 81.0000 mark. Traders who are pursuing selling positions should not become overly ambitious and they should look for realistic targets while using take profit orders. SOL/USD has been choppy and may remain that way.
The use of conservative leverage under present conditions is highly recommended. The ability of SOL/USD to provide fast results cannot be overstated. Resistance near the 96.4000 level should be watched closely, the last time Solana touched this level was on the 18th of February. The reversal higher demonstrated in SOL/USD since yesterday has the cryptocurrency within sight of this mark now.
Nervous conditions are dominating the cryptocurrency market right now. The ability of SOL/USD to achieve a strong reversal higher may run out of power sooner rather than later. Traders need to understand lower ranges are still being challenged and reactions are part of the speculative landscape.
Solana Short-Term Outlook
Current Resistance: 97.8500
Current Support: 91.7500
High Target: 105.2500
Low Target: 85.1000
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