Solana (SOL) has attracted investors’ attention by increasing by nearly 20 percent in the last week. However, it is necessary to be cautious about the continuation of this increase. Although technical indicators present a positive picture, the sustainability of this trend seems to depend on the general movements of the market. In fact, this situation poses risks as well as opportunities for investors.
BBTrend: The Rise Is Not Strong Enough Yet
First of all, Solana (SOL)’s BBTrend indicator is currently at 2.53. This value had fallen to -10 a few days ago, indicating excessive selling pressure . However, we are seeing a slight recovery and buyer interest re-establishing. This suggests that the market is regaining confidence in Solana.
BBTrend is a momentum measurement based on Bollinger Bands. Therefore, positive values indicate price strength, while negative values indicate weakness. Solana’s BBTrend value does not yet indicate high momentum compared to the market as a whole. However, this suggests that the rise could be largely due to Bitcoin’s new highs. Therefore, investors should watch closely to see if this rally continues.
DMI Indicator: Solana in a Strong Uptrend
In addition, the Directional Movement Index (DMI) chart shows Solana’s ADX value as 47.3. This value, which was only around 10 last week, suggests that trend strength has increased significantly. More importantly, it is noteworthy that this increase has occurred in such a short period of time.
ADX measures the strength of a trend, regardless of its direction. In general, values below 20 indicate weak trends, while values above 25 indicate strong trends. In addition, the +DI indicator is at 37 and the -DI indicator is at 6.1, indicating that buying pressure is much stronger than selling. This confirms that Solana is entering a strong uptrend. As a result, these indicators support investors’ confidence in Solana.
Will Solana Reach $210?
In addition to all this, Solana’s EMA lines also show a very positive picture. Currently, the price is trading above all EMA lines and the short-term EMAs are positioned above the long-term EMAs. This indicates a clear uptrend . Also, the widening distance between EMAs indicates strong upward momentum.
If this strong momentum continues, Solana is likely to test the $210 resistance. This level would be the highest price point since March. However, it should be noted that if there is a weakening in the general market sentiment, Solana could pull back to the $179 or $165 support levels. At this point, the sustainability of the trend will largely depend on Bitcoin’s performance and the general mood of the market. As we reported at Kriptokoin.com , it is important for investors to be careful and follow market developments closely.
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