• Solana bounced back in 2023 but failed to break through horizontal resistance
  • The Bullish Case Still Holds Unless Prices Break Below 2022 Lows
  • Solana could trade above $40 if it breaks out of horizontal resistance

Cryptocurrency investors must be excited about price movements in 2023. After all, Bitcoin has rebounded from last year’s lows, sparking similar moves in other major cryptocurrencies.

Solana followed suit.

The price has more than doubled this year in what appears to be a clear bullish breakout, rising from $10 to over $25.

However, the market failed to build a bullish trend after trading above $26 in January. Instead, a consolidation has begun, raising doubts among bullish traders.

The best way to answer questions like these is to look at the big picture. As the chart below shows, it is difficult to build a bullish case while the market remains below horizontal resistance.

However, the 2022 lows are still holding, so unless the market breaks below these lows, we can build a bullish scenario.

Solana Chart by TradingView

Further gains should occur once the horizontal resistance is exceeded

Solana price remains bearish while below horizontal resistance. But a break above that means more strength.

Especially if the US dollar weakens again. 2023 So far, the dollar has been trading in mixed conditions.

But with the Fed on pause, a new weakening would bode well for cryptocurrencies and Solana.

A breakout of horizontal resistance on the daily close will open the door for a rally above $40. If the Fed believes US inflation data is on the right track, the dollar should weaken in the second half of the year.

By Jules

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