• Solana is up over 100% in 2023, but is stuck below a horizontal resistance.
• A break above this resistance could signal a move towards $40 or higher.
• The US dollar’s weakness could further support Solana’s rise.
Solana’s Price Action In 2023
Solana has seen strong price action in 2023, rallying from $10 to over $25. However, the market has failed to build on the bullish trend and has instead entered into a consolidation phase. This brings some doubts as to whether the bullish momentum can be sustained in the future.
Horizontal Resistance Limits Gains
The best way to clear these doubts is by looking at the bigger picture. As long as Solana remains below horizontal resistance, it is difficult to make any strong bullish case for it. The 2022 lows remain in place, so one can build a bullish scenario as long as the market does not dip below those levels.
Break Above Resistance Could Trigger Move To $40
If Solana manages to break above this horizontal resistance level, then more gains are likely ahead – especially if the US dollar’s weakness resumes in the second half of 2023. If this happens and daily closes are made above this resistance level then traders could expect a move towards $40 or higher for Solana’s price action.
US Dollar Weakness Could Support Gains
The US dollar has been trading with a mixed tone so far this year but if renewed weakness takes hold due to inflation data following its right path then it would bode well for cryptocurrencies such as Solana and trigger further gains for its price action.
In summary, while there are some doubts concerning performance of cryptocurrencies such as Solana due to their inability to break through certain resistance levels; if they manage to do so then traders should look out for potential moves towards $40 or even higher depending on how weak or strong the US dollar becomes this year due inflationary pressures or otherwise .