Solana price increased by 9.3% in the last 24 hours to trade at $136.36 as most altcoins continue to witness gains. On the other hand, Bitcoin price yesterday slipped to sub $60,000, triggering panic in the markets but has since recovered and is hovering around $61,327 during European business hours on Tuesday.
Solana Price May Surge 24% If Bulls Hold This Level
The previous symmetrical triangle on Solana’s daily chart has morphed into a descending triangle due to Bitcoin price moving lower yesterday. Although this is a tad bit concerning, Solana has generally had an impressive track record in terms of its price action, and the support that has developed around $130 is also robust.
The level has been tested 4 times now in the past 3.5 months and has held ground each time. However, this time things may be different as the Bitcoin factors are in play.
The SOL price action just touched the 200-day simple moving average (SMA) and slightly bounced off it. This indicator is famous for providing robust support levels when trading financial instruments. CoinGecko data shows Solana’s 24-hour trading volume surged by 135%, an indicator that investors are gaining interest in the asset.
Solana price is expected to bounce off this support zone and make for the upper trendline of the descending triangle. This may constitute a 25% move from the current price that will set the asset at $171. On the flip side, should the current support break, Solana’s price may find further support lower, around $98, $87, and $56.
Solana Price Watching Out For Bitcoin’s Next Move
Bitcoin is currently in a precarious situation as high selling pressure pushed it down to a weekly low of $58,456. However, bulls quickly pushed the price up and the asset closed the day yesterday above the $60,000 support level. Bitcoin tested this level five times in the last four months, making it a significant zone to watch.
Bitcoin is simultaneously in a consolidation one that spans 4 months and it is at the lower boundary of that range. BTC price can bounce off this lower level and make for the upper boundary that coincides with its previous all-time high (ATH) price of $73,838. On its way up, the asset may encounter resistance around $65,000, $72,000, and $73,838, before flying off into the price discovery zone. On the flip side, Bitcoin may find support around the 200-day SMA ($58,600), and if it breaks lower than that, $49,800 and $43,800 may cushion the falling price.
Bottom Line
SOL price action has been impressive in the first half of 2024 but if BTC price continues to trend lower, it may spell doom for Solana and the entire market.
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