Solana Trades Sideways: Brace for a Breakout Trade at $166

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Solana Trades Sideways: Brace for a Breakout Trade at $166

Even after the weaker USD price-action, which generally has a beneficial impact on the SOL/USD pair, the SOL/USD coin pair failed to put a stop to


Even after the weaker USD price-action, which generally has a beneficial impact on the SOL/USD pair, the SOL/USD coin pair failed to put a stop to the downward moves of early in the day. The SOL/USD price picked up some more offers around the $160.00 mark, during the Asian trading session. Engineers have been unable to swiftly remedy this issue, resulting in transactions on the Solana blockchain failing to process blocks. As a result, Solana coin came under some downward pressure.

The recent buying bias in the crypto market has played a significant role in limiting future losses for the SOL/USD currency pair. The SOL/USD is now trading at about $161.797, and in the previous twenty-four hours, Solana has lost 2.69 percent.

The losses in the SOL/USD coin pair, on the other hand, could be brief or short-lived, as the weaker US dollar is helping to limit deeper losses in the SOL/USD. The broad-based greenback went sour ahead of the European session, after failing to extend its positive early-day gains.

As the latest US inflation data increases concerns that the Federal Reserve will begin asset cutting in 2021, the dollar remained within tight bands. As a result, the current losses in the US dollar have failed to provide any major support to the SOL/USD coin pair, at least for the time being.

The SOL/USD pair, on the other hand, may benefit from recent bullish movements in the crypto market. This began when the BTC price began to rise above the $46,000 resistance level versus the US Dollar. The BTC has risen above $47,000, although it is still encountering resistance near $47,600. The Bitcoin/USD exchange rate remains far above $45,000. As a result, BTC has begun a new upward trend above the $46,000 resistance level and the 100 hourly simple moving average.

 

SOL/USD Technical Outlook

On the technical side, the SOL/USD coin is facing strong resistance at the 167.690 level. This level is being extended by a downward trendline on the 4-hour chart. Closing of candles below the 170 level suggests strong chances of a continuation of the bearish trend.

On the lower side, the coin is likely to go for the 153.39 support level, and below this, the next support could be found around the 137.10 level. The 50-day simple moving average is likely to provide resistance at 175.65, and a bullish crossover above this level could extend the buying trend until 182.99 and 196.30. Good luck



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