Cryptocurrency Solana (SOL) has had an exciting first few weeks of 2023 after hitting a local low of $8 on December 29th, 2022. Since then, the digital asset that has long been linked with collapsed FTX exchange and Alameda Research has risen by 235% to post a local peak of $26,80, exactly a month after the $8 low on January 29th.
Solana’s Recovery Fizzles Below the 200-day Moving Average
However, Solana’s road to reclaiming $30 levels below FTX’s collapse has been hit by a roadblock: the 200-day (green) moving average, as seen in the one-day SOL/USDT chart below, courtesy of Tradingview.
Also, from the chart, it can be observed that Solana (SOL), at current levels around $23, is now consolidating between the $28 resistance level and the $20 support. It is also trading above the 50-day (white) and 100-day (yellow) moving averages, hinting that it still has some bullish momentum to attempt to break past the 200-day moving average situated around the $26 resistance.
However, its daily MFI (green), MACD, and RSI (red) hint at an ongoing consolidation that could also lead to a pullback to the $20 level if Bitcoin dips in the crypto markets.
Therefore, a wait-and-see approach to Bitcoin‘s next move would be a wise path moving forward when trading Solana.
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