Key point:
REX Shares launched the first-ever US-staked cryptocurrency exchange-traded fund on Wednesday, giving investors direct exposure to Solana (SOL) and an opportunity to earn yield through staking.
Although the price action showed promise in the past few days, the recovery fizzled out on Tuesday. Could buyers push the price above the overhead resistance in the next few days? Let’s analyze the charts to find out.
Solana price prediction
Solana turned down from the 50-day simple moving average ($156) on Monday, indicating that the bears are fiercely defending the level.
On the downside, the bulls are trying to arrest the pullback at the 20-day exponential moving average ($148). This suggests buying on every minor dip. If the rebound sustains, the possibility of a break above the 50-day SMA increases. The SOL/USDT pair could ascend to $168 and eventually to $185.
Sellers are likely to have other plans. They will try to pull the price to the solid support at $140. Buyers are expected to defend the $140 level with all their might, because a break below it may open the doors for a fall to $126 and then to $110.
Related: SOL ETF news gain evaporates, while chart warns of another 20% drop
The pair rebounded off the 50-SMA on the 4-hour chart and rose above the 20-EMA. That signals aggressive buying at lower levels. If buyers sustain the price above the 20-EMA, the pair could jump to $155 and later to $159.
A break and close above $159 will complete an inverse head-and-shoulders pattern, which has a target objective of $192.
Contrarily, a break and close below $144 suggests the bears are selling on every minor rally. The pair may then decline to the $140 to $137 support zone.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.