Solana rose by 67% in just 17 days as the bull rally started on October 10 this year. However, as it hit the peak at $263, it initially took a sideways path followed by a downturn. SOL is one of the cryptos that could rally literally; however, the sudden shift in momentum caused the community to talk. Is it the start of a downturn for the fifth biggest crypto or is there something we are missing?
Solana On a Roller Coaster
Solana hit $263 on November 22 but then dipped to $203 last week. Since October 10, it had been in an upward parallel channel with some up spikes. It tried crossing the ATH a few times but failed which pushed it down to the parallel channel again. Initially it looked like the channel was going to hold the price but soon it fell out from the bottom, hitting $203.
This movement drove it under all the moving averages and now they are the active resistance. We even witnessed the death cross over on December 11 on a 4 hour chart. Even the RSI at 43 gives a signal about lack of momentum. However the trading volume is up by almost 39% as compared to the last 24 hours.
What’s the Next Target for Solana?
Solana’s next big target is $300. But first, it needs to break through resistance levels at $222 and will have to fight its way to $263. Easier said than done.
Right now, the price sits at $215.32, and interest is growing, with open interest rising by 2.25% to $5.34 billion. Investors are closely watching these key price points to see where Solana heads next.
New Staking Opportunities for Solana Investors
On the investment side, Bitwise launched a Solana Staking ETP (BSOL) in Europe. This new product is designed to address the previous lack of staking rewards from Bitwise’s Solana ETP, ESOL. BSOL offers a staking reward rate of 6.48%, which is higher than the 5.49% from 21Shares. While things are moving slower in the US, Bitwise has filed for a spot Solana ETF, though approval is still up in the air.
What’s Next for Solana?
Right now, Solana’s price is in a bit of a struggle. Some analysts believe it could retest the $203 support level before bouncing back. It’s a tough spot, but there’s still potential for growth. There are fewer moments in crypto when some solid crypto starts moving down during a rally. However, it might be a signal of building momentum and the price can surprise the community with a sudden spike.
