Technical Analysis for SOLUSD for 28th February 2023
Solana in a Rising Wedge, Cooling Off After a 2X Surge
Past Performance of SOL
Solana remains within an uptrend. However, from the daily chart, prices are struggling to pump higher with the same strength as before. As it is, SOL has support between $20 and $22 with a clear upper limit at $26. Per this setup, the uptrend will be valid only if SOL surges above last week's highs with expanding volumes.
Solana Technical Analysis
After a near 2X rally from December lows, SOL is cooling off. However, the uptrend remains and will be the case as long as the coin is above $20. Presently, prices are in consolidation, rising within a wedge as lower lows print relative to the upper BB. Based on the SOL candlestick arrangement and the flat-lining of prices in the past few sessions, traders can wait until there is a breakout below $20 or above $26 before committing. Losses below $20 may see SOL drop to $16, the 78.6 percent Fibonacci retracement level of the December to February trade range.
What to Expect from SOL
Amid the recent consolidation, traders might look to exit their longs. Whether they would double down depends on the reaction at the above-mentioned reaction lines. Losses below $20 would see Sol drop even lower in an expected retracement. Conversely, a bull breakout above $26 may lift SOL to new Q1 2023 highs.
Resistance level to watch: $26
Support level to watch: $20
Disclaimer: Opinions expressed are not investment advice. Do your research.
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