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Solana Struggles to Maintain Momentum Ahead of Bitcoin Halving: What’s Next For SOL?

Published 12/04/2024, 17:26
Updated 12/04/2024, 20:45
© Reuters Solana Struggles to Maintain Momentum Ahead of Bitcoin Halving: What’s Next For SOL?
SOL/USD
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The News Crypto -

  • Solana (SOL) price has been strong but recent trading lacks momentum, hovering below $200 with decreased volatility.
  • Despite attempts to break $200, SOL struggles and falls below key support, raising concerns.
  • Investors face a decision: sell SOL or accumulate below $200, with technical indicators suggesting potential for a bullish shift post-Bitcoin halving.

The Solana (SOL) price has demonstrated remarkable strength since the beginning of the year, but the current monthly trading activity has failed to provide the necessary momentum to sustain its upward trajectory.

The price has remained within a narrow range, indicating a decrease in volatility and trading activity that has not significantly impacted bullish sentiments surrounding the upcoming Bitcoin halving event.

Despite multiple attempts, the SOL price has struggled to maintain levels above the crucial $200 mark. After failing to sustain above this threshold for two consecutive attempts, the price began to plummet, slipping below a pivotal support zone.

The bulls have been unable to lift the price back within this support-turned-resistance zone, raising concerns about the future price action as the bears appear to have capitulated to the current levels.

Should you buy or sell Solana?

Now, investors and traders must decide whether to sell Solana or seize the opportunity to accumulate the cryptocurrency below $200. Technical analysis of the SOL price chart reveals that while the cryptocurrency has displayed significant strength since the start of the year, the bearish start to the current month has temporarily dampened the bullish hopes.

The trading volume remains within a reasonable range, indicating adequate trader participation, which may have a significant impact on the rally. Although the technical indicators currently remain in the neutral range, they may soon turn bullish in the coming days. The Relative Strength Index (RSI) is trading horizontally at the moment, while the Moving Average Convergence Divergence (MACD) is on the verge of achieving a bullish crossover.

Before the anticipated bullish shift, some additional losses can be expected, potentially dragging the SOL price below $165. However, this could present a favorable buying opportunity, as the markets are expected to turn bullish following the Bitcoin halving event.

This could be the moment when the Solana price regains levels above $200. To achieve this, the bulls must maintain their strength, paving the way for the price to test higher targets above $250.

This article was originally published on thenewscrypto.com

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