• Solana rallied in 2023, rising from $10 to over $25.
• The market failed to build on the bullish trend and instead entered a period of consolidation.
• A break above horizontal resistance could open the gate for a move above $40.
Solana’s Bullish Outlook
Solana has seen a strong rally in 2023, with its price more than doubling from $10 to over $25. However, after trading above $26 in January, the market failed to build on the bullish trend and instead entered a period of consolidation. To determine whether a bullish case remains valid, investors must look at the bigger picture and determine if the market holds below horizontal resistance or dips below last year’s lows.
Horizontal Resistance
It is difficult to build a bullish case while the market holds below horizontal resistance. Therefore, traders should closely monitor this level as it could indicate whether Solana will move higher or not. If it breaks above this level, Solana may trade above $40.
Factors Influencing Price Action
Cryptocurrency investors must consider other factors that may influence Solana’s price action such as US dollar strength or weakness. So far in 2023, the dollar traded with mixed results but renewed weakness could bode well for cryptocurrencies and for Solana in particular. It is also important to note that if the Fed believes that US inflation data follows the right path, then this could lead to further dollar weakness which would be beneficial for crypto prices like Solana’s.
Conclusion
A daily close above horizontal resistance should trigger more gains for Solana and potentially push its price up towards $40 or even higher levels depending on other factors such as US dollar movement and investor sentiment towards cryptocurrencies overall. Investors should continue monitoring these levels closely as they are key indicators of how far Solana can go in terms of price appreciation potential in 2023.
Risk Disclaimer
All investments involve risk and the past performance of a security does not guarantee future results or returns. Cryptocurrencies are volatile assets and investing in them involves significant risk of loss due to their complex and decentralized nature coupled with their sensitivity to external factors such as government regulations or economic/market conditions etc.. Therefore please do your own research before investing in any cryptocurrency or digital asset mentioned herein