Solana (SOL) recorded Gradual gain Last week, it hit a 7-day high of 15.95%. It is currently trading at $18.73 with slight gains on its price. Although SOL is still 92.61% below its all-time high of $260, its recent gains in the past week have pushed its price closer to the $20 level.
This week’s SOL price forecast indicates a bearish trend
SOL is in a sideways trend this week, after positive price action in the past two weeks. A small red candle has formed on the weekly chart which indicates that the bears are active this week. Also, SOL is still trading in the lower region of Donchian Channel (DC)expressing a downward trend.
that it Relative Strength Index (RSI) It is located at 45.60 in the neutral zone between the oversold at 30 and the overbought at 70. The RSI is reflecting sideways this week.
SOL’s Moving Average Convergence/Divergence (MACD) It is just above its signal line and is converging which is a bearish signal. Although the MACD displays a negative value, the histogram bars are green, indicating a bullish recovery in the future. So amIf the bulls prevail, SOL is likely to move to an upward trend in the coming weeks.
Key support and resistance levels for SOL
SOL is Trade at $18.73 after it found an important support at the $15.43 price level a few weeks ago. This places the altcoin near the $19.48 resistance level.
A break above the $19.48 resistance will help boost the price to regain the $20 psychological resistance. If this happens, SOL is likely to rise to the $21.81 resistance after a break above $20. However, a price drop below $18 in the short term is still possible given its bearish outlook on the weekly chart.
Factors affecting the price of Solana
There are many factors at the moment that can affect the price of SOL. These factors include macroeconomic factors such as inflation and the regulation of cryptocurrencies in several areas. Also, utility and adoption are vital along with recent trends and developments in the ecosystem.
Another trend in the SOL ecosystem that is likely to influence price action this week is the volume of Decentralized Exchange (DEX). according to a report From on-chain analysis platform DefiLlama, Solana’s weekly DEX volume has increased to 5th on the list at press time.
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SOL’s DEX volume rose 84%, and 24-hour trading volume rose above $38 million. This increase is likely to help boost price action in the coming week.
However, despite the increase in the total volume of DEX, the total value locked (TVL) is still stagnant. DefiLlama shows that SOL’s TVL has been in the doldrums since its decline in November 2022 following the collapse of FTX.
TVL is currently priced at $273.26M, with no noticeable increase in value despite the slight gain in SOL price on the daily chart.
Featured image from Pixabay and chart from TradingView.com