You will admit that Solana has enjoyed 2021 with impressive actions so far. The alt’s YTD return on investment is at a whopping 11,000%, though most of these surges accumulated when the crypto saw a bullish move after July. As healthy metrics support price actions, Solana plans to extend its upsurges into November.
Though Solana’s short-term movement encountered an obstacle near $216, market players can expect some support channels to guide SOL to its new price levels. While publishing this article, Solana trades at $208.3 after dropping 1% in the past day.
SOL Four-Hour Chart
For now, a double top appears to prevent Solana from exploring the price levels beyond $216. Meanwhile, bearish sentiments by the Awesome Oscillator, MACD, and RSI confirms possible reversals before Solana rises past $216. The 20 Simple Moving Average and 78.6% FIB retracement might be vital during Solana’s anticipated retracement. That is because SOL might rely on the levels to maintain higher levels after its 20 October rally.
Moreover, the double bottom near $185 might also act as a defensive zone since the 50 Simple Moving Average supports the region. Meanwhile, a significant-close beyond $218 may have Solana exploring 138.2% FIB ($254) and 161.8% FIB ($277) levels.
Bears might tighten their position for a close under the 50% FIB level and the 200 Simple Moving Average to cancel the bullish picture highlighted above. Such developments will knock the altcoin further low before bulls stage a recovery.
For now, the Moving Average Convergence Divergence and the Relative Strength Index retraced from monthly peaks and appeared on their prime level for the upcoming surge. Meanwhile, a bearish twin high on the Awesome Oscillator might not be ideal for market players awaiting an immediate bounce beyond $216.
Multiple bearish divergences in the Awesome Oscillator, Moving Average Convergence Divergence, and Relative Strength Index might witness Solana extending its plummets towards its short-term support zones. However, that may be a preparation for the massive rally. Market players can expect Solana to rally to 138.2% and 161.8% FIB levels in the anticipated upward move.
Stay around for upcoming market updates.