Solana Continues to Grind Back and Forth

Expect choppy behavior, but if you are a longer-term trader, this might be a place to start building a position.

Solana has done very little during the trading session on Thursday, as has been the case for the last couple of weeks. We are hanging about the $100 level, an area that would attract a lot of attention. As long as we can find some type of has no real catalyst to get moving, I see this changing anytime soon.

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Solana will more than likely need to see some type of external influence to get overly bullish. At this point, I think it is obvious that Solana is going to be waiting for Bitcoin or Ethereum to make up its mind before it will make a move. Solana is playing second fiddle to these markets, despite the fact that it had burst onto the scene so aggressively just a couple of years ago. Nonetheless, the 50 Day EMA above offers a little bit of technical resistance, just as the 200 Day EMA well. With that in mind, I think this is a situation where the market will probably find quite a bit of selling pressure above, so I think it is going anywhere anytime soon. This chart represents what is going on in the entire crypto market right now, nothing.

Whether or not it is consolidation or accumulation remains to be seen, but at this point, it looks like you have got a clear range-bound market that you can deal with, but we are essentially at “fair value.” The bottom of the range is at the $80 level, while the top is at the $120 area. We are right in the middle of it, so unless you have a longer-term outlook on the market, there is absolutely no reason to get involved. While Solana does have a great longer-term outlook to it, I do not necessarily think this is going to be anything more than a potential investment. That is probably true with most cryptocurrencies right now, at least until money starts flowing back into the markets. As a general thought, it appears that there is no real desire to get involved in the crypto markets by most traders, so therefore I think you probably should listen unless you are looking to buy it “on the cheap” and hold onto it until the cycle starts to rally everything out there. Expect choppy behavior, but if you are a longer-term trader, this might be a place to start building a position.