Solana (SOL/USD) clears above the 50-day MA
Solana (SOL/USD) jumped to a 2-month high of $38.7 over the weekend. The strong recovery happened after Google Cloud announced it had become a Solana validator.
Google Cloud further said it would continue working with the Layer-1 blockchain. The partnership will see the introduction of Blockchain Node Engine to the blockchain in 2023. Solana is now expected to become the payment service for Google Cloud services.
Aside from the recent developments, Solana has witnessed increased growth. In late September, the total transactions on the blockchain rose past the hundred billion mark for the first time. Of course, that comes when Solana enthusiasts continue to express concern over the frequent network outages. The increasing adoption means investors see real use cases for the proclaimed Ethereum killer.
Elsewhere, a pseudonymous crypto analyst Cantering Clark is too optimistic about SOL recovery. In a note to his 149,500 Twitter followers, Clerk says SOL is forming a multi-month base. He posits that the cryptocurrency is taking out a diagonal resistance and is consistently getting a green light.
Aside from the positive fundamentals, technical indicators show SOL attempting to break a key level.
SOL rejected at $37, another attempt for buyers to push higher?
Source – TradingView
Technically, SOL was rejected at the $37.6 resistance zone. The token attempted a breakout after a strong rally over the weekend. The jump helped the cryptocurrency to recover above the 50-day MA for the first time since mid-August.
The MACD indicator shows a bullish momentum for SOL. However, the momentum has slightly weakened after a 10% SOL price drop on Monday.
Will SOL go higher?
The $37.6 is the key litmus test for SOL. There is already an indication that buyers are rejecting a price drop below the 50-day MA. Should buyers remain resilient, we vouch for SOL’s break above $37.6. That will open a buy trade and set it for a price increase to $42 and the main resistance at $47.
Another price rejection at $37.6 could see buyers wait longer for SOL to go higher. If the price breaks below the moving averages, a bear market could continue for SOL.
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