SOLANA : BEWARE OF THE UPPER BOUND- the market has been trading in a wide 40$ range, between $80 and $120, since the end of 2023. The medium-term trend is therefore neutral.
- This range interrupted the underlying bullish trend started in the last quarter of 2023. Prices first failed to cross the $120 level, then corrected towards $80 where buyers were numerous and powerful enough to prevent the market from going lower.
A rebound then took place, leading prices to trade above a short-term trend line, up to a level close to the upper limit of the trading range.
Both the 21 and 34 period moving averages remain bullish, providing price support, but the DMI indicator continues to display a lack of directionality in the short term.
- Although the growing appetite of individual and professional investors for cryptocurrencies is now certain, technical analysis tells us that it is perhaps still a little early to say that the consolidation has come to an end on SOLANA.
Indeed, the lack of a new high combined with the lack of directionality of the movement could prevent the long-term investor from starting to increase their exposure to this asset.
On the other hand, a clear daily crossing of the $120 barrier will however unlock the new upward potential that everyone is waiting for, with short-term targets located around $132.85, $145.65, $163.90 then $187.15 by extension.
Pierre Veyret, Technical Analyst at ActivTrades
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