Solana Price Analysis
• Solana traded within a range formation, with resistance at $26 and support at $22.7, and lower timeframe analysis showed that $23.5 and $22.5-$22.7 are important to watch out for.
• If BTC and SOL are able to defend the outlined levels of support, it was likely both assets will see gains.
• A violent expansion is likely to follow an extended period of constriction in SOL price, with a surge above $29.5 potentially taking it all the way up to the daily bearish order block in the $35 area.
Range Formation
Solana (SOL) has been trading within a range since mid-January, between $20.4 and $26.6, with mid-point resistance around $23.5 seen in recent hours of trading. Longer-term investors have reasons to be cautious however as the asset rests beneath an immense level of resistance at $26 which served as support from May to November 2020 before being breached by bears post-December 2021 rally attempt; this could be considered a key level for bulls looking for long opportunities on SOL/USDT pairs with potential profit targets just above this area or even further upside if momentum is found beyond this point towards the next bearish order block extending from around $34-$38.8 on the daily chart timeframes for longer term buyers/holders eyeing potential profits over time if momentum can sustain itself hereon out .
Support & Resistance Level
Demand is likely to be seen on a dip back down into the lower end of this range at approximately 22$, while longer term buyers may want to wait until higher levels above 24$ are reached before entering positions as there exists some degree of uncertainty surrounding whether or not buyers will be able to sustain any upward movements beyond 26$. Bitcoin (BTC) also trades above an important zone of support around 22k$ so if both assets can defend these levels then they should see some gains going forward due to their correlation with each other which has been quite strong throughout January 2021’s market movements thus far; however caution should still be taken when investing in either asset as volatility is always present regardless of market sentiment or current technicals analysis readings – only invest what you can afford to lose!
Volatility Indicators
In addition, falling 1 week Price Volatility readings indicate that whether Solana leans bearish or bullish we should expect a sharp move soon enough given its current constricted state beneath significant resistance near 26$. This could lead into another round of strength akin to what we saw during late December/early January when prices topped off at nearly 30$ per token or maybe even higher depending on how much buying pressure accumulates following any eventual breakouts past 26$.
Conclusion
Overall therefore, it appears that Solana holds good prospects for those willing to take calculated risks given its continued correlation with Bitcoin’s own movements coupled with recent price action indicating there may be more strength ahead should bulls manage gain control over key price points such as 23$, 24$, 25$ etcetera – only time will tell!