Solana (SOL) and Terra (LUNA)’s market values fell more than 23% last week. According to analysts, both altcoin projects are now at points of success or abandonment, which will determine their fate. Analysts state that a support or resistance breakout could result in a significant move for both assets.
What are the forecasts for altcoin project Solana?
Solana (SOL) has reached critical support zones after suffering significant losses last week. Still, buying pressure has yet to rebound for the altcoin. Analysts evaluate Solana as follows:
Solana is currently testing the upper bound of the parallel channel developed on its four-hour chart. Trading history shows that every time the SOL rises to this resistance trendline, a rejection occurs, causing prices to retrace to the lower edge of the channel. A similar market reaction could see the Tier-1 token break past the $108 support level and pull back towards the lower trendline of the 10% channel around $100.
Still, resistance may be weakening as Solana has tested the upper border of the channel three times since March 5th. Analysts remind that the current price levels of the SOL are critical because a decisive four-hour candlestick could invalidate the pessimistic view to close above $115. Also, analysts state that if the crucial supply wall is breached, the SOL may rise to $124.
Tom DeMark signals buy for LUNA
Terra’s native token is also sitting at a key point in its trend. The Tom DeMark (TD) Sequential indicator has recently given a buy signal in the form of red nine candles on the 12-hour chart of LUNA. You can find the successful signals of the indicator in question in this article of Kriptokoin.com. The bullish pattern for LUNA predicts one to four candlesticks to rise, but the buying pressure hasn’t started yet. Analysts point out the following levels:
The 100 hourly exponential moving average of $91 in this timeframe is the only support level that prevents LUNA from falling further. Meanwhile, the 50 hourly exponential moving average at $100 is acting as resistance, rejecting any upside price action. Only a 12-hour candlestick outside this price pocket can determine whether the optimistic thesis presented by the TD setup will be confirmed.
Analysts say that due to the uncertain outlook, traders will try to be patient at current price levels. A decisive close above the resistance could launch LUNA at $110, while a breakout of the support could result in a drop to $82.
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