The bearish outlook on Solana fades as the coin begins to consolidate


Solana had a 2022 to forget. After crossing the year well above the $100 mark, the coin saw several major sell-offs. Right now it is trading slightly above $35, but the bearish outlook seems to have faded a bit. Here’s what you need to know:

  • The selling pressure on SOL has eased as the coin finds strong support at $35.

  • The altcoin showed no bullish signs, however, with its uptrend limited to $41.25.

  • But consolidation above $35 and improving sentiment in crypto could change all that.

Data Source: TradingView

The bullish case for Solana

A few weeks ago, it was hard to make a bullish case for Solana. The coin had fallen below $50 and would go one to break through two more crucial support zones. In fact, SOL was expected to decline to $20 before any bull run.

But that bearish outlook seems to have faded a bit. Although SOL is not as strong as it was at the start of the year, the altcoin has shown immense resilience. For now, it has managed to hold the $35 support. It also comes as general sentiment in the crypto market receives a boost in early June.

With these factors, SOL could finally be ready for a decisive bull run. If indeed the coin is able to break the $41.25 ceiling, it could push further to test $55 before any pullback. But a consolidation failure above $35 will invalidate this analysis.

Is SOL a downside risk?

The downside risk for SOL doesn’t seem so worrisome at the moment. In fact, we don’t think the coin will lose the $35 support. Even if it were to somehow fall below this price, expect a quick and quick recovery.

However, this may affect its bull run. But with everything else taken into account, including the general sentiment in the market, SOL should register some gains in the coming weeks.

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