Key Takeaways:
- Crypto trader Moon Overlord Solana price action is mimicking Ethereum’s during 2018-19.
- SOL prices failed to hold $112 support.
NEW DELHI (CoinChapter.com) — Blockchain platform Solana seems to be tracing Ethereum’s 2018-19 price action, as per Twitter-based crypto trader who goes by the moniker Moon Overlord.
During 2018-19, Ethereum’s (ETH) price reached a high of $1,420 early in the year before prices started moving downwards, losing 94% of its value. ETH prices lounged between $80 and $354 between Jan. 2019 and Jul. 2020 before exploding upwards in 2021.
If Moon Overlord’s prediction holds, Solana could see a downside movement before climbing upwards around late 2023, rising nearly 213.60% to reach $335.50 before continuing its uptrend. However, the price target is dependent on SOL mirroring ETH’s price movement.
In the shorter term, Solana could rise to $201 before prices decline. Hence, Solana seems to offer something for both traders and hodlers. Moreover, if Solana keeps true to Moon Overlord’s prediction, many investors will buy SOL once prices reach the bottom during 2022-23.
Furthermore, Solana’s claimed transaction speed of 65,000 tps, along with low gas fees, makes it a prominent name in the list of so-called “Ethereum Killers.”
DeFi and NFT sectors are also expanding on the Solana network. With both DeFi and NFT sectors expanding, Solana will likely grow alongside.
Solana Price Charts
SOL prices failed to hold above the $110 price level as the upside movement lost steam around Feb 8. Bears moved to cash in on SOL’s recovery rally following the Jan 21 crash. Moreover, the dynamic resistance from Solana’s 26-day Exponential MA has proved too much for the Solana token.
Immediate resistance for SOL is near its 26-day EMA at $112.8. If prices breach and consolidate above immediate resistance, SOL would target resistance at $124. A market-wide recovery would push SOL prices to target resistance near the $132.62 before retreating.
Conversely, immediate support for SOL is near $101.5. If bears continue to sell, the token could see prices moving down to support at $93. Furthermore, a sustained sell-off could bring the support at $87 come into play.
Meanwhile, the Solana token’s relative strength index is currently neutral, clocking 41.98 on the daily charts. In addition, the RSI trendline is moving down towards oversold levels.
At the time of writing, SOL was trading at $107, up 0.83% on the day.
