- Solana puts the wheel on the accelerator, up more than 17% since Jan.
- Bank of America statement backs current price action in Solana.
- The formation of a round bottom confirms the upward move of the price.
Solana started the session on a higher note while adding in the top ten performing cryptocurrencies by market capitalization. The digital currency has lost almost 40% from the $202 high made on Dec. 27. Volume has supported the upward momentum from the $130 low.
Bank of America calls Solana the “Visa of the digital asset ecosystem”
In a research note, Bank of America said its low fee structure and high transaction speed will lead the digital asset ecosystem. Ethereum may lose credibility among blockchains that support smart contracts.
On the 4-hour chart, the price has broken through the important moving average crossovers of the 20/50/100 EMA (Exponential Moving Average). However, acceptance above the 200 EMA is essential for confirmation of the current uptrend. Furthermore, the formation of a “Round Bottom” supports the price move up, as it could reach the top of the formation at 167 on Jan. 5.
The daily Relative Strength Index (RSI) trades at 60, just slightly below the overbought zone. Solana bulls will be further boosted if the price closes above 155 today. However, another momentum oscillator, the Stochastic Oscillator has formed a double top near 95, the indicator is falling from 95 to 80 for see some take profit.
However, traders should take it as a buying opportunity. The price could retest the downward slope from the mentioned high. Strong buying will appear when the 100 EMA ends.
On the other hand, if the pair fails to hold the $168 level, it can move back towards the 50 EMA, at 146.