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Solana (SOL) has emerged as a leader in the recent market rally. However, with every peak comes a potential cliff, and for Solana, certain price levels are now under intense scrutiny. Analyst Chris Burniskeformerly of Ark Invest, has pinpointed a particular price level as a danger zone for SOL, suggesting a chance to reverse its impressive rise.
Examining the daily SOL/USDT chart provided, Solana’s recent rally has been nothing short of meteoric, with the price soaring to new heights. However, the sharp rise above $55 has placed SOL at a critical resistance level. The presence of a long upper wick on the daily candle indicates that while buyers pushed up the price, sellers intervened strongly, hinting at a possible reversal.
The chart shows that SOL’s meteoric rise has been supported by a significant increase in trading volume, affirming the strength of the bullish sentiment. However, the price level around $55 appears to be a resistance point where the rally could take a hit. This resistance is underlined by the RSI indicator approaching overbought territory, which often precedes a pullback as traders take profits.
A possible price reversal from this point could see Solana value retreat to the next major support level, possibly around the $45 mark, where the 50-day moving average lies. This moving average could serve as a dynamic support level that cushions SOL price and prevents a steeper decline.
Relevant headlines in the crypto space have closely followed Solana’s performance. The network’s growing ecosystem, growing adoption, and recent announcements on scaling solutions have contributed to the bullish narrative.
