Solana currently has the third largest open futures holding, which is the most relevant metric in derivatives contracts. This gives optimism to the market for this cryptocurrency so that it can appreciate in the coming months. Some traders believe that SOL can earn the 300% profitability for the second quarter of 2022 reaching the level of $800.
For the past few days, Solana (SOL) has been trading below the 200 EMA (188.10), indicating that bears could continue to put pressure on this cryptocurrency.
On December 13, it fell to the low of 147.16. Leter, it rebounded from that level and found strong resistance below 4/8 of a Murray at 187.50. Around this area, there were more than 3 attempts to break this top, but it failed and fell to support at 171.88.
A breakout and close above the 200 EMA (188) could initiate a stronger recovery to 203.12 (5/8) and then to 218.00 (6/8).
Conversely, if the SOL price trades below 177.45, it will suggest that the bears have absorbed the demand. This could clear the way for a drop to 156.25 (2/8). If this support is broken, the SOL/USDT pair could quickly drop to 0/8 of Murray at 125.00.
In the 4-hour chart, we can see that since December 14 it has been trading in an uptrend channel. Yesterday, the SOL tested the bottom of the trend channel and is expected to rebound above the 21 SMA and continue its uptrend in the coming days.
On the other hand, the eagle indicator reached the extreme oversold level at 95-points, and it is likely that there may be a technical correction from Solana in the coming days.
Support and Resistance Levels for December 23 - 24, 2021
Resistance (3) 195.85
Resistance (2) 187.50
Resistance (1) 181.37
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Support (1) 171.88
Support (2) 165.95
Support (3) 156.25
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A trading tip for SOL on December 23 - 24, 2021
Buy above 177.45 (21 SMA) with take profit at 187.50 (4/8) and 218.75 (6/8), stop loss below 172.00
