Time to Go Long on Solana?

Despite Solana being a revolutionary blockchain and a key narrative in this bull market, it has lost more than a quarter of its value in a month's time.

However, it appears that the fan-favorite altcoin is exhibiting price behaviors which may fuel substantial growth.

Daily time frame analysis

SOLUSDT - 1 Day Time Frame

The blue trendline has consistently served as solid support. Each touch of this trendline has produced a bounce, followed by a retest before the price reached a new high.

Additionally, SOL has maintained a robust structure, recently touching its 200-day moving average (200MA) for the first time. Unlike many other coins, Solana continues to trade above the 200MA, sustaining its trend.

For a solid entry, it is advisable to wait for a stronger bounce, similar to previous patterns, followed by a retest with visible demand at the 200MA.

If Solana fails to rally to the marked “Resistance” level, it is likely the price will gradually decline towards the 200MA, which could be easily lost if a retest does not produce a bounce.

4-hour time frame analysis

SOLUSDT - 4 Hour Time Frame

SOL has already retested the daily 200MA on the 4-hour timeframe, resulting in a rally that suggests a possible downtrend reversal, potentially pushing the price above the first marked pivot.

For a solid entry, it is crucial to wait for SOL to establish a bottom at this pivot, which could offer significant potential for targeting the marked red area likely to act as resistance.

Solana's underperformance may lead to more fluctuations around the 200MA. However, traders prefer to buy when the price touches the 200MA, as such opportunities are relatively rare, especially among leading coins in a bull market.

Therefore, it is advisable to wait for demand and a bottom around the 200MA or the pivot before entering the market. Otherwise, the next price target could be $108, the previous liquidity level.