Jump to $40? Solana Tech Analysis Update Revealed
• Solana has seen a bullish surge in 2023, rising from $10 to over $25.
• The market is currently held below horizontal resistance and needs to break above it for further gains.
• If the US dollar’s weakness resumes, Solana may move above $40 per coin.
Solana Technical Analysis Update
Solana has seen an impressive bull rally in 2023, more than doubling its price since the start of the year. However, the market has failed to build on this positive trend, instead staying range-bound below horizontal resistance. To continue higher, Solana must break above this resistance level. If the US dollar’s weakness returns later in 2023, this could be a catalyst for further gains and push Solana towards $40 per coin.
2022 Low Support Level Remains Intact
Despite failing to break above horizontal resistance so far in 2023, there is still reason to be optimistic for cryptocurrency investors. The 2022 low remains intact as support and provides a solid foundation for any bullish movement in the coming months. As long as price does not dip below this level, a bullish scenario can remain valid.
Bullish Case Depends on Dollar’s Performance
The performance of the US dollar will have a big effect on whether or not Solana can breakout from its current consolidation pattern and rise above $40 per coin. So far in 2023, the dollar has traded with mixed results but could resume its weakening trend if inflation data follows expectations later in the year. This should benefit cryptocurrencies like Solana and provide some much-needed upward momentum going into 2024.
What Happens If Horizontal Resistance Is Broken?
If price breaks through horizontal resistance then traders could expect more significant gains ahead for Solana as it moves towards $40 per coin or even higher if other factors are favourable such as a weakening US dollar or positive news flow from industry developments . A daily close above resistance would be needed to confirm that buyers have taken control of market direction and that this bullish move is likely to continue in future sessions too .
Overall , while there are some doubts about whether or not Solana can push beyond its current trading range , there is still room for optimism . As long as support at 2022 lows holds , then there remains potential upside if other conditions such as weakening US dollar help drive prices higher . A close above horizontal resistance should confirm that bulls are taking charge and open up possibilities of Solana pushing up towards $40 per coin and beyond .