Solana, Cosmos Price Analysis: August 31, 2021
Solana is on another level of a bull cycle, rallying 450% from July lows. The token exploded past $100 last weekend and barely a day after resting support at $65. A daily close above $100 triggered another upward roll, with Solana almost closing the gap to $120.
Meanwhile, Bitcoin is resilient above the key support at $46,000 amid increased on-chain demand accumulation support, as reported by Glassnode. A catalyst is required to place BTC in the trajectory of $50,000, a move that may birth the next rally to $60,000.
Apart from a few selected altcoins like Solana, Cosmos, and Ethereum, the cryptocurrency market is underwater.
Solana’s winning streak from July only slowed down at $80, allowing the testing of supports at $70 and $65, respectively. Toward the weekend session last week, a recovery ensued, with the price moving to $100.
The token briefly stepped above $100 before correcting to test new and higher support at $90. A daily close above $100 saw bulls retake control on Tuesday during the Asian session. SOL exploded toward $120, achieving another all-time high of $118.
Realize that the rally is far from over but mainly driven by the fear of missing out (FOMO) and increased institutional risk appetite and retail demand. The MACD is highly bullish, affirming the potential to lift past $120.
SOL/USD Daily Chart
Cosmos, like Solana, is also the green after posting impressive double-digit gains on Tuesday. It is trading at $23.2 at writing as bulls concentrate on breaking the resistance at $24. Another daily close above this barrier will bring ATOM close to $28, where it will be only $4 from its all-time high.
The trend favors the bulls based on the general technical picture. The Moving Average Convergence Divergence (MACD) indicator emphasizes the ongoing rally while lifting higher above the mean line.
ATOM/USD Daily Chart
Despite the rally, Cosmos is not overbought yet, according to the Relative Strength Index (RSI). More gains will be triggered as the RSI enters the overbought area above 70. Therefore, the potential to rise to $28 remains massive.Source