Solana has bounced during the trading session on Thursday to recapture the $141 level, gaining almost 4%. That being said, crypto markets in general have been struggling to bit until the last couple of days, as it looks like we are trying to form a bit of a “floor the market.” That is something that we desperately need after we have seen such an explosive move to the upside, followed by a massive meltdown over the last couple of months. At this point, the biggest question out there of course is going to be “Is crypto done selling off?”
A lot of this is due to the Federal Reserve looking to tighten monetary policy, and that of course has a lot of “risk off behavior” around the world. Crypto of course is not immune to that, as we have seen a lot of downward pressure on anything remotely close to being a significant risky asset. At this point in time, Solana is still relatively new when it comes to institutional money, so it does make a certain amount of sense that they bailed on it rather quickly.
All things been equal, the $120 level underneath is significant support that we have seen tested a couple of times recently, and it does make a certain amount of sense that we would see potential pressure in this area. Ultimately, I think this is a market that will continue to be difficult to deal with, but at the end of the day it is probably a situation where we will see longer-term appreciation given enough time. Unfortunately, what we really need to see at this point in time is Bitcoin rallying, because unfortunately it still moves the rest of the crypto currency markets. If that does in fact end up happening, and it looks like it very well could at this point, smaller coins such as Solana will get a boost. If we can break above the $156 level, then I think we will have cleared enough resistance to go higher and reaching towards the 50 day EMA and beyond. At that point, I would be a buyer, expecting a move towards the $200 level above, which was an area of significant selling pressure. That being said, I think this is a market that has been oversold, as there is so much interest in Solana.
