Is it now the time to buy Solana after the MACD crossover?
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Solana is a leading smart contract platform.
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Helium is going to vote to migrate to the Solana ecosystem
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SOL, the native token, has been recovering
It has been relatively quiet for Solana and its native token, SOL/USD. Since mid-August, the cryptocurrency has been largely bearish. That was after breaking below the 20-day and 50-day MA, breaching an ascending triangle.
In a quick drop, SOL touched the $30 level in late August. It has made recoveries lately and trades at $34. The recovery has been happening since Helium announced that it was migrating to the Solana network. Helium developers stated that the reason for the migration was to boost its speed, stability, and scalability. The Helium Foundation is expected to hold a community vote starting September 12 on the planned move.
The migration will underline Solana as a leading smart contract network. Solana has already been touted as a leader for DeFi, NFTs, and decentralized apps. Of course, Solana will need to attract more users to send positive signals about its role as an Ethereum killer. The network will also need to strengthen the security features which hackers have targeted.
Solana price action, trend, and momentum
Source: TradingView
On the daily chart, the MACD line crossed above the moving average. The cryptocurrency has also moved above the 20-day moving average. However, we remain cautious in making a bullish call on SOL.
Although the momentum is building, SOL is weak, and the trend is bearish overall. Trading volumes remain low, suggesting that the momentum will unlikely be sustained. Besides, SOL trades below the $42 resistance. The resistance is the key barometer to assess whether a lasting bullish momentum is likely.
Summary
SOL is not yet a buy at the current level. The cryptocurrency has to build sufficient momentum, followed by a breakout above $42.
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