SOL/USD posted additional nervous selling over the past day, fueling potential nervous speculative elements as the cryptocurrency slumps in the short term.
SOL/USD is crossing near the 94,000 ratio at the time of this writing. Lows near 90.7500 were posted over the weekend. While short-term bull traders who have been looking for quick upside reversals may be impressed with the gains, the actual upward movement from this weekend’s lows isn’t exactly impressive. Little was done to change the jittery trading sentiment that was stirred again in SOL/USD.
Solana evolves in correlation with the vast cryptocurrency market. After suffering a large amount of sales from the 21st January, SOL/USD was able to rebound from the depths of nearly 80.0000 hit on the 24thand of January. However, Solana, like its major counterparts, was unable to clear clear resistance levels that would herald the end of its medium-term downtrend.
7and February SOL/USD hit a high of around 122.0000, challenging prices last seen on the 21stst of January. Technically, this resistance level and the inability to breach it higher may scare off traders, who may still see a gradual decline as the dominant feature on the one- and three-month charts. While SOL/USD was certainly able to rebound from its January lows, the upward move may start to fuel the idea that a false rally may have occurred.
SOL/USD is in an important technical position and is hovering above crucial support levels. The price action at Solana over the past week has certainly shown signs of headwinds and additional lower depths being technically hit. The idea that other major cryptocurrencies are also being pushed back could confuse bullish traders. While some speculators may perceive current price ratios as buying opportunities because they believe SOL/USD is oversold, they should practice their risk-taking tactics carefully and ensure that stop loss protection works.
Traders looking to continue the bearish momentum in SOL/USD in the short term cannot be blamed. Skeptical speculators who think further lows will be seen and want to target nearby support can make the logical bet, igniting their short positions when slightly higher reversals have been posted. If SOL/USD begins to challenge the 93.0000 and 92.0000 price ratios in the near term, this could be seen as a bearish signal that could trigger increased selling pressure.
Solana’s short-term outlook
Current Resistance: 97.6000
Current support: 91.8500
High target: 104.7500
Low target: 87.1000