Solana, still not on the SOL against Bitcoin!

After an exceptional year 2021 for Solana marked by an increase of +13,873%, the market seems to have changed its trend since the end of last year and is drawing us a nice bearish configuration. In a complicated economic context, can an altcoin still create a surprise? Let’s see it together in this new analysis!

This analysis of the SOLANA share price is offered to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

Solana: a weekly chart still bearish!

Solana vs. USDT, Weekly.

The pivot point in Weekly on Sol is very clear here: it is the $130-$140 level. We worked this level in September 2021 on several occasions, and we also had a buying reaction at the end of 2021 during the fall of Bitcoin. So we naturally came back to test this level with failure

Remember that the financial markets are currently in uncertain conditions. Cryptocurrencies are already qualified as very risky, and altcoins are an even riskier branch of cryptocurrencies. It makes total sense for large carriers to gradually withdraw from these assets under current conditions.

On a price support, on a volume resistance.

In a zone of high volatility in Daily!
Solana vs. USDT, Daily

If we zoom in more in Daily, I allow myself to display the Volume Profile. This indicator allows us to display the levels on which there is the most volume. I add to that moving averages allowing me to draw confluences.

Thus, we can see that the $101-$102 level offers us the confluence of the Point Of Control, in other words the level on which we have the most volume over the observed period, as well as the short-term EMA.

This confluence gives us a clear level of big short-term resistance. For now, the support level set by the price is holding up, but if it breaks, we will soon find ourselves at the $90 level, which is our next Low Volume Node (LVN).

Currently we are operating in an area of ​​high volatility, due to lower volume. The support set by the price is very visible, but not necessarily very relevant.

Solana, resistant to the vagaries of Bitcoin

Solana vs. Bitcoin, Daily.

Similar to the Weekly chart against USDT, here we have a clear pivot point emerging, and holding up relatively well!

I often remind you, but do not hesitate to look at the graph of your alt against Bitcoin in order to know if it is strong or, on the contrary, weak against Bitcoin.

This could give us an indication, especially the strength of our altcoin. So I can imagine here that on a Bitcoin bounce against USDT, the Solana should give us a nice bullish leg, as long as it holds that 25,000 satoshi pivot point.

Summary

  • 25,000 satoshis: pivot point against Bitcoin: keep.
  • $102: Point of Control and EMA daily.
  • $110: Low Volume Nodes (LVN): should serve as resistance
  • $90: Low Volume Nodes (LVN): should act as support.

These levels are exposed in the short term, and these are the levels on which it seems relevant to me to execute. In the medium term, I think we can get back to the $60-50 levels on Solana if the whole market were to correct severely.

Conclusion

In an uncertain market, the assets themselves uncertain double the risk potential. It is therefore quite logical that the cryptocurrency market is currently undergoing a fall, and even more so the altcoin sector which represents a particularly risky branch of the crypto market. Stay pragmatic, and don’t forget that the DCA (Dollar Cost Averaging) remains the best solution in difficult market conditions.

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