Solana has emerged as the front runner in the race to gain prices in the market, however with each top comes a potential abyss and for Solana some price levels are now under intense scrutiny, analyst “Chris borneski”, who previously worked at Ark Invest Investments, has pointed to a certain price level as a risk area for Solana, indicating the possibility of a reversal of his impressive rise.
By examining the daily chart provided to Solana, its recent rally was nothing less than a meteor as the price rose to new heights, however, the sharp rise to more than 55 dollars has put the Sol digital currency at a critical resistance level and the presence of a long upper wick on the daily candle indicates that while buyers pushed the price up and therefore sellers intervened strongly, indicating a possible reversal.
Why is SOL raised up?
The data shows that the rapid rise of the Sol digital currency was supported by a significant increase in trading volume, which confirms the strength of the uptrend, however, it seems that the price level around 55 dollars represents a point of resistance where the rally may face a setback.this resistance is confirmed by the approach of the RSI to the overbought zone, which often precedes the pullback as traders take profits.
Read about digital currency LDO LIDO
Is the price stable?
A possible price reversal from this point could lead Solana's value to the next key support level and possibly around the USD 45 mark where the 50-day moving average is located, and this moving average could serve as a dynamic support level protecting the Sol coin price and preventing a sharper decline, as the relevant headlines in the field of digital currencies have been closely following Solana's performance, the growing network ecosystem, increased adoption and recent announcements related to solutions have contributed to the expansion of the bullish narrative.