The crypto market is filled with fear, but this does not stop some cryptocurrencies from gaining ground and continuing to scale. SOL, native to the Solana network, is one of those crypto that has escaped the bearish tide, managing to mark a new all-time high of $ 52.45 a few hours ago.
At the time of this writing, SOL is trading at $ 48.66, down 2.66% in the last 24 hours. But, it still maintains a gain of 11.59% in the last 7 days.
The Solana network has been growing at great speed, becoming one of the most active blockchains of the moment.
One of the most recent positivism factors behind this project was the successful investment round. With it, the Solana foundation managed to attract $ 40 million for the development of decentralized protocols and applications that run within the network.
The growth of this blockchain is evidenced in more than 50 projects launched since March alone, mostly DeFi applications.
As this ecosystem grows, the demand for SOL tokens keeps pace, which has been driving the big price spike.
Without a doubt, the search for cheaper alternatives to Ethereum is the main cause that networks like this grow at the speed they are doing.
Solana Technical Analysis (SOL)
When we look at the daily chart of the SOL vs USD, we notice how the short-term trend has been resuming in recent days, after the immediate resistance, located at $ 47.77, was broken.
However, we are seeing the bulls in trouble again, after they hit a next hurdle, located at $ 49.57.
We are now seeing a strong bullish rejection, which could either be giving way to a small correction before moving up further, or to a larger decline to make a significant pullback in the medium term.
At the moment the probabilities are on the side of a scenario of small correction and search for new highs.
For us to think about selling, the support at $ 40.73 must be crossed. If this happens, it opens the way to a fall to a minimum of $ 37.29.
SOL has not yet made a healthy correction in the medium term
Looking at the weekly chart, we identify an uptrend with incredible strength, which has barely given way to minimal pullbacks.
The last weeks one of those corrections was being made, managing to visit the 23.60% level of the Fibonacci retracement tool.
A retracement towards that level is not considered healthy, but it is totally normal that it is a sufficient fall in a parabolic rise like the one we are seeing from Solana (SOL).
It appears that we are seeing the resumption of the medium-term trend. If this is true, the resistance at $ 52.45 must be broken, which would open the way to a new momentum capable of reaching at least $ 62. Higher up, the next Fibonacci target is $ 76.
For us to think that a deeper correction is going to occur, towards the area between 38.20% and 61.8% of Fibo, the support at $ 44.34 must be violated.
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