- Solana puts its paddle on the accelerator, gains more than 17% since January 11.
- Bank of America’s statement supports the current price action in Solana.
- Rounding bottom formation validates the upswing in the prices.
Solana started the session on a higher note while adding in the top ten performing cryptocurrencies by market capitalization. The digital currency lost almost 40% from the highs of $202 made on December 27. The volumes supported the upside from the lows of $130.
Bank of America calls Solana “Visa of the digital asset ecosystem”
In a research note, Bank of America stated low fees structure and high transaction speeds will lead the digital asset ecosystem. Ethereum might lose its credibility among smart contract-enabled blockchains.
On the 4-hour chart, the price has crossed important moving average crossovers of 20/50/100 EMA (Exponential Moving Average). However, an acceptance above the 200-EMA is essential for the confirmation of the current bull trend. Further, the formation of the “Round bottom” supports the upswing in the price, as it could reach the beginning of the formation at 167 on January 5.
The daily Relative Strength Index (RSI) trades at 60, just a tad below the overbought zone. Solana bulls would be further motivated if today’s price close above 155. However, another momentum oscillator Stochastic Oscillator made a double top formation near 95, indicator retreated from 95 to 80 that indicating some profit booking.
However, traders should take it as a buying opportunity. The price could retest the bearish sloping line from the mentioned high level. A strong buying would emerge upon the close of 100 EMA.
On the other hand, if the pair failed to hold onto the $168 level then it could retrace back to towards the 50 EMA, which stands at 146.