Solana to $50? Here’s why it could be possible

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

• Solana has a bullish construction on the upper timeframe worth charts.
• The $40-$50 zone may very well be pivotal within the coming weeks.

Solana [SOL] was within the midst of a bullish run of a magnitude not witnessed since April 2022. Nonetheless, the run again then was adopted by a continuation of the earlier downtrend. Was the identical situation set to repeat itself?

Is your portfolio inexperienced? Take a look at the SOL Revenue Calculator

Information of FTX unstaking a further 1.6 million SOL meant bullish sentiment may take successful and result in a big worth correction. It was unclear if merchants and traders may anticipate such a drop, as Bitcoin [BTC] managed to remain above the $33k stage and will go additional up.

The place would an excellent retracement take SOL costs?

Supply: SOL/USDT on TradingView

The one-day chart confirmed that bullish intent remained overwhelming. The RSI continued to maneuver within the overbought territory above 70 and the On-Steadiness Quantity was climbing increased. Collectively they confirmed shopping for quantity was on the rise and the upward momentum was agency.

The upper timeframe charts confirmed that the transfer above $27-$30 was a definitive sign that additional features may observe. They did, and SOL reached $46.9 on 1 November. A revisit to the previous vary highs at $27 can be an excellent long-term shopping for alternative.

The Fibonacci extension ranges confirmed $44.08 and $51.46 had been ranges the place bulls may e book income and look ahead to a retracement.

The conviction of patrons out there meant such a deep retracement may not arrive anytime quickly

Supply: Santiment

The Weighted Sentiment shot increased in latest days as costs surged northward. The Social Dominance additionally rose enormously to face at 6.32%. These metrics underlined the concept the bullish narrative for SOL had power within the eyes of the bulk.

But, by itself, the social metrics don’t exclude the potential for a retracement.

Supply: Coinalyze

Real looking or not, right here’s SOL’s market cap in BTC’s phrases

The spot CVD on the Coinalyze information has been on a gentle uptrend since 19 October, when the SOL worth was at $23. This confirmed the demand for the token. The rally was adopted by a rising Open Curiosity (OI) as effectively, which specified robust bullish sentiment.

The weekly chart revealed that the $38-$50 area, which had served as resistance in August 2022, may pose issues for the patrons as soon as extra. If $50 was flipped to assist, it was possible that SOL may rally to $80 and $105 subsequent.