Solana Surges 150%, Reaches $26.53: Where Does it Go From Here?

• Solana price is up over 150% in the last three weeks, breaking a new 2023 high of $26.53.
• Tentative support levels may be provided for by the tested accelerated rising trendline in confluence with the 50-day Exponential Moving Average (EMA) around $23.22.
• If investors heed the call to lock in profits, Solana price will first drop to $20.00 before rebounding for a fresh attack on the seller congestion at $26.00 and $30.00.

The Solana price has seen an impressive surge over the last three weeks, rallying to a new 2023 high of $26.53. This rally comes despite the implosion of FTX, which threatened the survival of the entire ecosystem. In just two weeks, the smart contracts token has jumped up 68%, trading at the current price of $24.56.

It appears that investors are cashing out profits as the Solana price has retraced, suggesting that the current uptrend may not last much longer. To ensure further growth in the long term, SOL must secure higher support, preferably around the $24 mark. This will give bulls enough time to build momentum for the subsequent movements to the upside. The primary support levels may be provided for by the tested accelerated rising trendline in confluence with the 50-day Exponential Moving Average (EMA) at $23.22.

If sellers become aggressive and continue to push the price lower, the Solana price may drop down to the main rising trend line and the next buyer congestion zone at $20.00. Investors looking to buy SOL should exercise caution, as the Moving Average Convergence Divergence (MACD) indicator is currently showing a sell signal.

On the daily time frame chart, Solana’s uptrend appears to be intact, however, the price is currently facing resistance at $26.00. In addition, the falling trendline and the 200-day EMA (in purple) are also capping movement to the upside. Nevertheless, the pullback may not be sustained, as the Money Flow Index (MFI) indicator is back above the midline (50.00) and may soon close in on the overbought region, potentially paving the way for further gains in the short term.

Overall, despite the recent retracement, Solana’s long term bullish potential in 2023 remains intact. For the SOL price to keep rising in the long run, it must first secure higher support levels, and investors must heed the call to lock in profits to prevent further drops. If these conditions are met, the Solana price could reach new highs of $26.00 and beyond in the coming months.

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