The company Solana (SOL) has been leading the recent market rise. But every high has a possible edge, and for Solana, several pricing points are currently being closely watched. Former Ark Invest analyst Chris Burniske has identified a certain price range for SOL as a danger zone, implying that the company may reverse its remarkable rise.
According to the supplied SOL/USDT daily chart, Solana’s recent climb has been quite impressive, with the price reaching all-time highs. But the sudden jump to above $55 has placed SOL at a crucial resistance level. The daily candle’s extended top wick suggests that, despite buyers’ efforts to drive prices higher, sellers have intervened forcefully, raising the possibility of a reversal.
https://x.com/cburniske/status/1724134469978984521?s=20
The data demonstrates that a notable increase in trade volume has accompanied SOL’s explosive surge, confirming the intensity of the optimistic mood. However, the $55 price level seems to be a resistance level where a pullback in the rise might occur. The RSI indicator is approaching overbought territory, which frequently signals a retreat as traders take gains, underscoring this obstacle.
If there is a possible price reversal from this position, Solana’s value might retrace to the next significant support level, which is the 50-day moving average, which could be around the $45 mark. This moving average can act as a dynamic level of support, preventing a further decrease in the price of SOL.
Solana’s performance has been the subject of pertinent stories in the cryptocurrency world. Bullish narratives have been reinforced by the network’s expanding ecosystem, rising usage, and recent announcements about scalability options.
