Before yesterday’s trading session, Solana’s price was in an aggressive bullish trend that had seen its prices surge by 25 per cent in five days. However, yesterday’s session brought the recent price surge to an end when prices dropped by 11 per cent and wiped out most gains made in the past week.
The five-day price surge that resulted in a 25 per cent rise in the value of Solana was due to a number of factors that included a recovering cryptocurrency industry, Heliums opting to use Solana as its blockchain and a change in crypto market consumer sentiments.
However, some of these factors that favoured a strong and aggressive bullish push to the upside have started to change. For instance, the strong bullish push that might have played a part in the recent Solana price surge has disappeared. In the past 24 hours, the cryptocurrency industry has lost 3 per cent of its market value, with market capitalization dropping below $1 trillion.
Other major cryptocurrencies, such as Bitcoin, which is down by 5 per cent and Ethereum, down by 2 per cent, also show a weakening cryptocurrency market. Solana, which is positively correlated with major cryptocurrencies, has also seen its value getting dragged down.
Another factor that has resulted in the bearish trend we are seeing today is the technical aspect of the market. For almost a month now, Solana’s price has failed to establish a long-term. Instead, the prices have traded in a sideways market. Therefore, every time we have seen a strong push to the upside, a bear trend emerges that cancels all the gains made. This was seen during yesterday’s aggressive bearish trend, which wiped out most of the gains made in the markets in the previous week.
Today, the Solana bullish trend looks to have resumed. In the next few trading sessions, we will likely see prices breaking yesterday’s price high of $39. However, my Solana price prediction still expects the prices to fail to hit the $43 resistance level and instead continue with the current horizontal market. A trade above $43 will invalidate my bullish analysis.
This post was last modified on Sep 14, 2022, 15:21 BST 15:21