Solana Price Prediction as $400 Million Trading Volume Comes In – Time to Buy?
Despite nearly $400 million in trading volumes coming in on Monday as per CoinGecko, Solana (SOL) is down just over 1.0% on the day.
SOL/USD was last trading around $21 per token, nearly 7% lower versus weekend highs in the $22.50 area.
Solana, the cryptocurrency that powers the high-performance, smart-contract-enabled Solana layer-1 blockchain, found strong resistance at its early June highs over the weekend, hence the recent retracement.
Some technicians might fear that SOL has formed a bearish double-top pattern.
However, other technicians are likely to be more optimistic given that SOL has found support at a key long-term downtrend, as well as ahead of its 200-Day Moving Average.
As a result, price predictions are mostly optimistic right now.
Solana broke above a downtrend that has been in play going all the way back to last August last week.
It currently appears to be in the process of confirming this breakout via its bounce at the retest.
As long as Solana can close above $21 on Monday, that would be a bullish sign.
Technicians would likely target a near-term retest of the key long-term support-turned-resistance $26-27 zone.
That would represent easy near-term gains of potentially around 25%, meaning it could be a good time to buy SOL right now.
But bulls should keep their optimism in check.
Solana saw a cascade of sell pressure in June in wake of the US Securities and Exchange Commission’s claim in its lawsuits against Binance and Coinbase that Solana is actually a security.
While these losses have since been erased, regulatory uncertainty is likely to remain a headwind for the SOL price in the coming months.
Investors should always be on the lookout to diversify their crypto holdings.
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