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Should you buy Solana after the 6% rise on Thursday?

December 24, 2021 By Ansh Rathod

Solana (SOL/USD) closed over 6% higher on Thursday and broke out of a strong resistance that it tried to break out from several times the past week. Many investors are now expecting a rally like Terra (LUNA/USD) and Polygon (MATIC/USD) in Solana, and are looking towards a new all-time high. Solana is a blockchain platform designed to host decentralized, scalable applications. Solana can process many more transactions per second and has much lower transaction fees than rival blockchains like Ethereum (ETH/USD)  due to which investors are expecting Solana to grow at a faster pace than Ehereum.

After a sharp rally in November which took Solana to a new all-time high, Solana has been correcting ever since and corrected by over 40%. However, it is looking like the correction may be over soon and Solana could soon start rallying towards a new all-time high. Thus should you buy Solana now?

Here is what the charts are pointing towards-

  • Solana has a strong demand zone at $190 and broke through on Thursday when it surged by over 6%.

  • Solana fell to $150 the last time it broke down from $190 which shows how crucial the zone is.

  • After breaking out from the resistance on Thursday, it is looking like Solana was retesting the zone on Friday and could soon resume the rally.

  • Investors can wait for Solana to break through the 200-day moving average before taking a long entry to confirm a bullish bias for Solana.

  • Investors must be cautious as Solana could still break down from the support level at $190 thus a stop-loss should be kept at $165.

  • Investors can set a target of $220, followed by $245 and eventually a new all-time high in the coming weeks.