No major pullbacks on SOL: Will $48 cap the rally?

In a space where volatility is the norm, SOL's price resilience stands out. Without any major pullbacks on record yet, what’s the best entry price for long-term players? Let's dive into what is in store for Solana.

TLDR

• Solana has established a new price range between $37 and $48, with current indicators suggesting a short-term cap at $48.
• Technical analysis proposes that a dip below $38 could offer lucrative long-term buying opportunities for SOL.
• RSI levels imply overbought conditions, hinting at a potential pullback, yet strategic buying below key levels is advised.
• We remain bullish on SOL's long-term prospects and recommend aggressive buying strategies below $33 and strong buys below $38.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

From a technical analysis point of view, the new range for price is $37 to $48. We feel that the $48 is unlikely to be broken to the upside in the short term and that SOL will remain range-bound. 

If the $37 support is broken and SOL tests lower, the $32 to $33 area looks like a great long-term buying opportunity. However, in our opinion, anything sub $38 is a great long-term buying opportunity anyway, and DCA’ing into prices sub $38 should give you great buys for the bull run. 

SOL 3D

Mechanics 

The RSI on the daily is coming down somewhat but remains in overbought territory, while the 3D RSI is very overbought, the most since September 2021. We would remain cautious on SOL as we feel a pullback is possible, but as we’ve mentioned above, we would be net buyers sub $38, and we would be aggressive buyers sub $33. 

The funding rate is still positive, and open interest is high; again, this would suggest some caution. 

Cryptonary’s take

We’re big fans of SOL for the long term, as we expect it to at least touch all-time highs in the next bull run. Therefore, we would be strong buyers below $38, and even more aggressive buyers sub $33.