Solana is a revolution in the industry that claims to offer faster and more secure transactions than Ethereum and Bitcoin. At the end of last year, Solana was around $9.37; after that, it started a rally, and now it is trading around $23.14, which is a decent short-term gain if you compare it with stock markets.
However, it is not the ideal time to invest in FOMO, expecting higher returns for the long term. 2023 is expected to be highly volatile; thus, SOL may observe fluctuating price action.
SOL broke the support of around $30 after the declaration of the FTX liquidity crisis. Currently, it is trading around $23, which is the ideal time to invest for the short term as the coin is in an uptrend and will regain its previous support of $30.
Technically candlesticks are forming in the upper Bollinger Bands. Other technical indicators such as MACD and RSI suggest positive momentum, so this rally will continue to the level of $30 at least, and if it breaks the level, the SOL price can be long-term bullish.
However, it is interesting to note that the SOL price has been trading in the lower Bollinger Bands on the weekly chart for the last ten months. After soaring prices in the last two weeks, Solana’s price is still trading around the baseline of the Bollinger Bands, which may suggest a long-term momentum change.
This week’s candle is significant to analyze the trend because if it becomes an indecisive Doji, it may turn bearish next week. Still, if the price of Solana sustains over the upper Bollinger Bands, it can regain the previous support of $30.
Technically for the long-term, the coin is still in a very bearish zone because RSI is around 40, and candlesticks have not crossed the Bollinger Band’s baseline in the last ten months.
However, if you want to accumulate SOL at the current price, you must depend on fundamentals depending on Solana’s potential in the next few years. Otherwise, you should wait because experts suggest a volatile year ahead, so the SOL price may come down to the level of $15 or less, which will be a better price to accumulate the token in your portfolio.
Higher inflation may impact the price of altcoins, so you have to keep a closer eye on the crypto portfolio and book the profit at the right time. You can expect a profit booking of around $30, so it might not turn long-term bullish so soon.
