Is Solana SOL a good investment after its recent price increase?

This is a difficult question to answer. On one hand, SOL has seen a significant price increase in recent months, which could suggest that it is a good investment.

However, it is also worth noting that Altcoin prices are notoriously volatile. So it is always possible that the price could drop just as quickly as it rose. Meanwhile, here are some key points to note:

  • SOL’s price has risen from the bottom of $32.
  • Salana is being marketed as an Ethereum competitor, but its frequent network problems are worrisome.
  • The price has yet to establish bullish momentum, as resistance at $42 keeps it from climbing higher.

Price bottoms are ideal buying opportunities, as most cryptos trade at multi-year lows. Solana SOL/USD, one of the hottest cryptos in 2021, is currently valued at $32.

The price is at an all-time low, which is around 60 percent from its highs of over $250. The cryptocurrency recently traded at $42, a significant increase from the lows of $26. Now, SOL appears to be trapped below a resistance level at $42.

The price of SOL needs to exceed $42 for the cryptocurrency to maintain long-term recovery. Even though the price appears to have broken above the downtrend, SOL is still bearish.

The general market and network issues are responsible for SOL’s bearishness. The Solana network, which is designed to rival Ethereum, is often dubbed Ethereum’s killer.

The name comes from the fact that it resembles Ethereum while also providing a more scalable ecosystem. In terms of transaction speed and cost, Solana compares favorably to Ethereum.

The prior year’s profits highlighted Solana’s trust in the blockchain sector. However, several hacks and network outages have exacerbated SOL’s market downturn. Solana needs to work on its network issues so that it can compete with Ethereum.

SOL technical analysis indicates a declining bullish force

Data Source: Tradingview

After failing to break past $42 on the 4-hour time frame, SOL is being pressured. The lack of directional movement emphasizes the token’s weakness. The RSI reading of 25 indicates that the token is currently in a seller’s market.

However, there is still room to fall further as the next support level is at $26. Because of this, SOL will be unable to break below $42 for a long time. The $26 support cannot be excluded from a decline.

A break to the upside is only possible if Bitcoin stages a relief rally. In that case, SOL could rise to $60.

Solana (SOL) looks like it is losing steam after a strong run in the past few weeks. The token is currently trading at $38.50, which is well below the all-time high of $42.80. This weakness underlines the lack of directional move for the token.

An RSI of 25 suggests the token is currently oversold. However, there is still room to move lower as the next support stands at $26.

As long as the bear crypto market continues, SOL will remain trapped below $42. We cannot recommend a trade on the token at this stage.

Summary

SOL is bearish. The token has not been able to break through $42, and it is heading downward. The next level to watch is $26, but the price could fall further. Because the market is bearish on cryptocurrencies, we do not advise taking a position in SOL.

Is Solana SOL a good investment after its recent price increase?

Solana’s SOL token has seen a recent price increase, but is it a good investment? Altcoins have been struggling as of late, and the cryptocurrency market is currently in a bearish state.

As such, we do not recommend taking a position on SOL at this time.