Solana regains its eighth spot on CoinMarketCap after recovering lost grounds
Golden Cross for Solana
Solana ($SOL), one of the leading layer-1 contenders, appears bullish as it recovers strongly, backed by technical indicators that suggest further upside potential.
A confluence of a few technical indicators points towards a bullish price action in April. The 20-day exponential moving average (EMA) and the 50-day EMA have just crossed. This is called the ‘golden cross.’ The $SOL chart shows the short-term EMA has just crossed the long-term EMA, indicating a major price rally.
The second primary indicator for a sustainable rally is the 200-day EMA. $SOL’s crossed the 200-day EMA at the end of March after OpenSea announced its decision to integrate with the Solana Network.
Solana’s Price: What Can You Expect?
$SOL maybe face some resistance at $147, which is the 0.382 Fibonacci Retracement level. If this resistance is broken, the next resistance level sits at $169. Solana will benefit from the OpenSea integration as Non-Fungible Tokens (NFTs) are becoming an essential part of GameFi and Decentralized Finance (DeFi). This allows Solana to tap into a robust NFT marketplace.
A few factors to consider may dampen $SOL’s price rally. First, investors may diversify their investment into Ethereum ($ETH) as the ‘Merge’ draws closer. Secondly, the Solana network has been plagued with instability due to network congestion in the past. This may be Solana’s Achilles heel that will turn investors and builders away.
It is unlikely Solana can breach its previous all-time high in April, but if the bullish momentum continues and the broader crypto market recovers, Solana’s last all-time high may not be that far away.
April’s Rally for the Crypto
April will likely be a good month for the crypto market generally. Layer-1 solutions and major altcoins will likely be the first to benefit from any price rally. April is also the first month in Q2, where new liquidity will be unlocked. April should be a promising month for Solana as it is still trading at a 48% discount from its all-time high.
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Source : web3wire.news
