SOL/USD has managed a slight reversal higher in early trading this morning, but conditions remain choppy as the cryptocurrency remains near crucial lows.
SOL/USD is trading near the 88.0000 mark as of this writing, and in early trading today the cryptocurrency did manage to hit a high of nearly 88.7500. However this ratio was attained after SOL/USD also hit a low of 86.7000 yesterday. Technical traders who take an optimistic stance may try to view yesterday’s weakest price as a positive. This because Monday’s low was incrementally higher than the lows displayed on Sunday, this when Solana traversed close to the 85.0000 mark.
The broad cryptocurrency remains rather nervous, like nearly all global assets as investment houses gear their thoughts to Wednesday’s U.S Federal Reserve pronouncements. SOL/USD was trading at nearly 143.7500 on the 3rd of April, meaning Solana has lost slightly less than 50% of its value in one month’s time. While SOL/USD was able to display a solid bullish trend from the middle of March until early April, the downward cycle which has redeveloped correlates to the broader trend among the other major digital assets.
Yesterday’s trading in SOL/USD remained rather nervous and choppy short term conditions are evident as important support levels are being tested. If selling continues to apply pressure because of nervous behavioral sentiment, additional tests of lows could certainly be exhibited. Day traders should monitor the 87.0000 support level. SOL/USD has the ability to move fast, and though the 88.0000 juncture is now being traversed, if momentum takes Solana lower a move towards the 87.0000 depth could spark worries.
Early this morning’s push higher may be a reason for hope that SOL/USD will start to reverse higher. Optimists within the cryptocurrency world are certainly counting on a robust move upwards to develop and when it does happen, the momentum will be welcomed by buyers. If the 88.7500 resistance level is challenged soon this could be a solid indicator. However, if the price of SOL/USD is not able to establish a real move towards this nearby price up above, traders may grow impatient and skeptical again.
Volatile conditions in the broad cryptocurrency market are bound to be generated near term. SOL/USD will not escape the choppy conditions which are likely to flourish. Speculators need to use all of their risk taking tactics wisely over the next couple of days. Sellers’ who continue to seek targeted prices below, should use take profit orders to make sure they cash out of winning positions before sudden reversals are seen. Short term goals and decisive price targets will be important for all day traders.
Solana Short-Term Outlook
Current Resistance: 88.8600
Current Support: 86.8900
High Target: 91.2900
Low Target: 83.9100