While below $40, Solana’s price action remains adverse. A series of lower peaks remains relevant. Only a breakout above $40 would invalidate the adverse sentiment.
Solana, a cryptocurrency designed to support smart initiatives and decentralized applications, was released in the first quarter of 2020. The subsequent market rally was one of the most spectacular in the history of cryptocurrencies.
As a result of the pandemic, people literally poured money into any online business-related initiative. In addition, governments and central banks inundated the financial system with cheap money, causing extreme speculation in the cryptocurrency market and stock market.
Thus, at its apex in November 2021, Solana’s performance relative to the U.S. dollar has attained 1,8640.78 percent. It traded above $225, but the decline was just as significant as the increase.
It is currently trading around $20, well below its historical highs. However, in terms of performance since inception, it has produced remarkable results, as the price has increased by over 1500% since its inception.
The cryptocurrency market rebounded in 2023 from recent lows. Following Bitcoin’s lead, other cryptocurrencies emerged.
Solana recovered from its lows at the same time as other cryptocurrencies, at the end of 2022. Since then, it has surged, but the adverse bias persists as long as the price is below $40.
Traders should concentrate on the intact series of lower lows. Consequently, while below $40, the likelihood is that the 2023 rally will be a bear market rally. These rallies are notoriously hostile and deceptive.
In conclusion, investors may wish to wait until Solana trades above $40 before initiating a long position. A risk exists that the market’s lows will be tested sooner rather than later if bears continue to exert pressure.
