Solana (SOL) and Cardano (ADA) Technical Analysis: Will Bulls Succeed?
Table of contents
Solana (SOL)
The high throughput blockchain uses SOL as the main currency.
Past Performance of SOL
The dominant path for Solana (SOL) is southwards, reading from the SOL crypto performance in the daily chart. In all, the path of least resistance in the last eight weeks remains southwards.
Solana Technical Analysis
Currently, there is a three-bar formation signaling the end of the bull run in the second half of December. The reversal of SOL coin prices from around the resistance at $160 points to weakness. Because of this, risk-off traders may unload on pullbacks, aligning themselves with the primary trend set in motion in November 2021. Notably, the reversal of December 27 is from around the 50 percent Fibonacci retracement level of the November 2021 trade range. It is a crucial reaction point that may see SOLUSDT prices drop back to December 2021 lows of around $150.
Day-Ahead and what to Expect
The technical candlestick arrangement of SOL token prices suggests weakness. Therefore, for buyers to add to their longs, there must be a close above $200. This would nullify the selling pressure of the weekend, allowing for the expansion back to $260. If not, SOL may drop back to December 2021 lows of $150 in a bear trend continuation pattern.
Cardano (ADA)
The smart contracting platform competes with Ethereum. ADA is the primary token.
Past Performance of ADA
The Cardano token price is bottoming up after posting deep losses in November. At the time of writing, ADAUSDT prices are within a bullish breakout pattern above $1.30—the middle BB.
Cardano Technical Analysis
There are hints of strength in the ADAUSDT daily chart. However, there must be a confirmation above $1.30, pointing to demand. Sustained gains above $1.30 confirming recent rebound from December 2021 lows could support buying pressure, lifting the coin to $1.80 and later $2.
Day-Ahead and what to Expect
Technically, ADAUSDT prices are bearish from a top-down approach. Still, Cardano token bulls are solidifying their positions in lower time frames, evident in the daily chart. The break above the middle BB is positive. However, buyers should reject selling pressure and sustain prices above $1.30 for the uptrend to be valid.