Jump to $40: Solana Technical Analysis Update

• Solana has had a strong rally in 2023, rising from $10 to over $25 but has failed to break above the horizontal resistance.
• A bullish case remains valid as long as Solana does not move below the 2022 lows.
• If it breaks above horizontal resistance, Solana may trade above $40.

Solana’s 2023 Price Action

Solana rallied in 2023, jumping from $10 to over $25 and triggering a similar move in other major cryptocurrencies. However, after trading above $26 in January, the market failed to build on the bullish trend and instead entered into a consolidation phase.

Building A Bullish Case

It is difficult to build a bullish case while the market holds below horizontal resistance. However, the 2022 lows remain in place, so one can still build a bullish scenario as long as the price does not dip below those levels. If it breaks above horizontal resistance, Solana may trade above $40.

US Dollar Weakness May Help

The US dollar has traded with mixed results so far this year but if renewed weakness occurs due to Fed policies then this could bode well for cryptocurrencies and for Solana specifically. If a daily close is achieved above horizontal resistance then this could open up further gains up towards the $40 mark.

Conclusion

Cryptocurrency investors have seen strong gains so far this year with Bitcoin bouncing from last year’s lows and triggering an increase in other major cryptos such as Solana. While currently held under its horizontal resistance line, there is potential for further growth if it can break through that level and benefit from any US dollar weakness that may occur due to Fed policies or inflation data during the second half of 2023.

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