- Summary:
- Solana price ended its long losing streak as the crypto market showed close links to stock markets amid a global FUD sentiment.
Solana price returned to the upside on Tuesday as the cryptocurrency market turned green after Monday’s massive losses. SOLUSD was at 138 at the time of writing, having risen by 6.7 percent on the daily chart. Solana had been one of the best-performing crypto assets this year, with its YTD gains standing at 36 percent versus Bitcoin’s 30 percent and Ethereum’s 7.8 percent.
Monday saw Solana register its eighth straight day in the red, its second-longest losing streak on record. The downtrend emanated outside the crypto market, as investors reacted to weak US jobs market data and rising prospects of recession in the world’s largest economy. The Dow Jones Industrial Average went down by 1.9 percent, Nasdaq 100 lost 2 percent, FTSE 100 shed 2.5 percent, while the Nikkei 225 index lost 12.4 percent of its value- the largest since 1987’s Black Monday.
However, the markets returned to the upside on Tuesday, with the Nikkei 225 going up by 10.2 percent. The recovery was reflected in the cryptocurrency market on Tuesday-in an unusual link between traditional asset markets and crypto. Nonetheless, that could be precisely what is needed to trigger a reversal by the crypto market after the recent downturn. Furthermore, many investors might see this as an opportunity to buy the dip.
Solana price momentum
SOLUSD has recently broken back above the middle Bollinger Band on the 2-hour chart, signaling control by the buyers. Furthermore, it has been rejected at the psychological $140 mark. Therefore, a breach above that level could strengthen the momentum to potentially sustain the upward movement. Meanwhile, the Moving Average Convergence Divergence (MACD) line is well above the signal line, adding support to the upside view.
Support and resistance
SOLUSD will continue the upside if it stays above the 138.10 pivot mark. In that case, the buyers could encounter the first barrier at 145.00. However, extended control by the buyers will strengthen the upward momentum to break the barrier and potentially test 150.00. Alternatively, a move below 138.10 will favour the sellers to take control. That could lead to the establishment of the first support at 131.96. Furthermore, extended control by the sellers could break below that mark, consequently invalidating the upside view and potentially strengthening the downward momentum to test 126.59.
