• Solana rallied in 2023 but failed to break above the horizontal resistance
• A bullish case remains valid unless the price moves below the 2022 lows
• If it breaks above horizontal resistance, Solana may trade above $40
Solana Technical Analysis Update
Cryptocurrency investors have seen a strong rally in Solana this year, with prices rising from $10 to over $25. Unfortunately, the market has since fallen back into consolidation as it fails to break above a key horizontal resistance level. However, there is still a bullish case for the cryptocurrency as long as its price does not dip below the 2022 lows. If it manages to surpass the key resistance level, it could potentially trade at prices above $40.
Key Resistance Level
The chart of Solana shows that a bullish trend is difficult to establish while its price remains below a key resistance level. The current market conditions suggest that any further gains will depend on whether or not the cryptocurrency can break through this horizontal resistance. Until then, investors should be cautious and keep an eye on potential dips below last year’s lows before entering any positions.
Weak US Dollar Bodes Well for Cryptocurrencies
The US dollar has been trading with mixed performance so far in 2023, however renewed weakness could benefit cryptocurrencies such as Solana if it manages to break above its current resistance level. This would open up opportunities for further gains and potentially see prices rise beyond $40.
Potential Upside
A daily close above horizontal resistance could trigger more upside potential for Solana and other major cryptocurrencies. While further strength depends heavily on the performance of USD going forward, renewed weakness in the US dollar could bode well for those looking to capitalize on higher prices ahead.
Conclusion
Solana appears set for further gains if it can manage to break through its key horizontal resistance level. Investors should observe potential dips before committing any capital and remain aware of USD performance as it may influence future movement of major cryptocurrencies such as Solana significantly