What's Next For Solana Prices After The Token Reached Its Latest High?
Solana’s sol token has had a very interesting day, climbing to its latest zenith and then suffering a retracement.
The digital currency, which serves as the native token of high-performance blockchain platform Solana, reached $215.06 this morning, Messari data shows.
After rising to this level, it fell back, declining to almost $195, a drop of more than 9%, additional Messari figures reveal.
Following this pullback, the digital currency recovered somewhat, and was trading close to $199.00 at the time of this writing.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
After these latest price movements, several technical analysts offered perspective, shedding some light on the key considerations that market observers should monitor going forward.
“Solana’s SOL token is facing a strong amount of resistance at $215,” said John Iadeluca, founder & CEO of multi-strategy fund Banz Capital.
He noted that if the cryptocurrency can break through this selling pressure, the next level of resistance will be at $250.
“I believe the strongest current selling pressure has built up resistance around $250,” said Iadeluca, who specified this as an important psychological level.
After that, the digital asset would face a “significant sell wall” near $260, where there is currently “selling pressure volume.”
Jason Lau, COO of cryptocurrency exchange Okcoin, offered a similar point of view.
He noted that “$215 is the last all time high so resistance is expected. If we can clear this, $250 is certainly possible.”
Julius de Kempenaer, senior technical analyst at StockCharts.com, also identified the $215 level as resistance, but stated that the $270 level will come next, describing that as being “the height of the consolidation projected on top the breakout level.”
In addition to clarifying the price levels that could offer key resistance, technical analysts also looked at the relative strength index (RSI), which is a technical indicator designed to give users a sense of to what extent an asset is either oversold or alternatively, underbought.
Lau spoke to this, stating that “the Relative Strength Index (RSI) is showing signs of SOL being overbought in the short term.”
Armando Aguilar, vice president of Digital Assets Strategy for Fundstrat Global Advisors, concurred, stating that according to this particular indicator, “SOL is in overbought territory.”
Iadeluca offered a slightly different viewpoint, stating that in his analysis, the digital token has just barely moved into overbought territory.
“My most confident gauge of Solana being truly overbought, at least relative to its RSI level, would be if it moves further into overbought levels over the next coming days,” he stated.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.Source