Why This Analyst Thinks Traders Should Not Be Bearish On Solana
For traders thinking Solana is controlled by the bears, a popular crypto market analyst, Chris Burniske, is giving a fresh perspective of hope for the major altcoin.
According to the former lead of Ark Invest’s crypto department, those who think that SOL is generally bedridden in a bearish mood are mistaken.
SOL Sets To Make a Breakthrough
Burniske said that the Ethereum killer still has a breakthrough opportunity to rally its price despite its reverse down at a resistance level.
The prominent analyst urged traders not to be extremely bearish on SOL as the coin would eventually retrace its value. He expects the crypto’s retracement to occur within the next few months.
Burniske, however, cautioned that investors might experience price decline due to the market volatility, which might heighten and cause massive losses for traders who have opened long positions in their leverages.
Since the start of the year, Solana has been in a bullish mood and showing signs of resilience and bravery, actually benefiting from the recent market bullishness.
Based on the daily and weekly trading movement since the beginning of the year, the current bearish action of SOL can be regarded as a mere retracement, something which is generally seen in other risky assets.
Most Ethereum killers, including Solana, are witnessing a similar kind of price reversal, which signals no major panic on the part of the SOL price.
Solana Price Analysis Shows Buy Signal
Burniske’s projection seems to be right based on technical price analysis. Over the past three months, Solana moved in a sideways trajectory trend at an average price of around the $14 mark. But within the last two weeks, Solana has surged its value by over 68% to trade at an average price of $23.59.
At the time of writing, Solana is currently trading at $23.18, down 5.50%, with a trading volume of $801,611,149 in the last 24 hours. The altcoin’s market cap stands at $8.6 billion, which puts it the 10th largest cryptocurrency, according to Coinmarketcap.
As per the TradingView chart below, the presence of a bullish hammer in the candlesticks signals the buyers are taking back control and pushing the price back above. The green indicator shows the sellers’ inability to drive the price of an asset further down.
The 50-day and 200-day moving average settings on the 4-hour price chart further support this bullish trend. The presence of the golden cross, as it is indicated by an asset’s short-term moving average crossing above its long-term moving average, signals a switch from a bear trend to a bull trend.
Based on price analysis, the current sentiment is bullish, as this can also be seen in the RSI stands at 64.22, showing that Solana is in the bull territory. Generally, the technical analysis shows that Solana has the potential to regain its value, though it may experience some corrections triggered by macro events.
Featured image from Unsplash, Chart from TradingView