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Solana’s bullish run from the $90 price zone experienced a slight dip after hitting the $110 price mark. This came after SOL formed a double bottom on the four-hour timeframe at the start of February before going on a bullish run.
An earlier analysis by Blockhead highlighted the bullish run from $90 with double digits profit opportunities. This played out perfectly in early February. While the price dip gave an opening for profit-taking, it also produced another opportunity for SOL buyers to register another significant price movement in the short term.
Here’s a look at how you can trade this price setup.
Solana: the Blockchain for Scale
Founded in 2017, Solana is a blockchain platform designed to provide scalable solutions for decentralized applications. Solana soared in popularity due to its faster processing speed for transactions and significantly lower fees.
Solana is primarily a proof-of-stake (PoS) blockchain but adds a layer of improvement on PoS with a mechanism called proof-of-history (PoH). PoH verifies transactions using hashed timestamps.
Its native token, SOL, is currently the fifth largest cryptocurrency by marketcap.
Maximizing the SOL Long Opportunity
The current dip on SOL took it to a critical support level at $105 which provides a good entry position for new buyers looking to join SOL’s bullish trajectory.
Buyers can enter at the current market price of $105 with expected take profit levels at $116 - $117. This will yield 12% returns in the short term with the possibility of further gains, if SOL is able to scale the selling barrier at the $117 price level.
Analyzing the price indicators showed the presence of buying pressure. Despite the price dip, the RSI (Relative Strength Index) stayed above the neutral 50 with a reading of 51. Similarly, the CMF (Chaikin Money Flow) posted a positive reading of +0.03 with SOL retaining its capital inflow.
Together with its price action, SOL has a high probability of producing double digit gains for short term traders.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.