Solana SOL/USD is taking off Wednesday, pushing higher while Ethereum ETH/USD and Bitcoin BTC/USD are falling lower. Solana is a level one cryptocurrency, the same as Ethereum, where other cryptocurrencies can be built off of these cryptocurrencies.
Solana was up 5.22% at $225.09 at publication Wednesday afternoon.
Solana Daily Chart Analysis
- Solana is pushing higher in what technical traders call an upward channel pattern. The stock has seen a streak of higher lows and higher highs.
- Connecting lows of the chart shows an upward trend in the crypto. Taking a parallel line to this and connecting it to the highs shows the range of the channel.
- The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing bullish sentiment.
- Each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) has been climbing higher the past few weeks and sits at 54. This shows that more buyers have been pushing into the crypto and now the buying pressure outweighs the selling pressure.
What’s Next For Solana?
Bulls are in control of the crypto and will maintain control as long as the price can stay within the channel. Bulls are also looking to see the price hold above the moving averages, as this will maintain the bullish sentiment in the crypto.
Bearish traders are looking to see the crypto start to fade lower and break below the channel support line. This could cause the crypto to see a change in trend and possibly start a downward trend. Bears are also looking for sentiment to change by seeing a crack below the moving averages.
Image by Albrecht Fietz from Pixabay
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