Solana (SOL): Correction Weakens, Despite Global Market Woes

*SOL Weekly timeframe shows a slow-down in profit-taking in three weeks

Global Financial Risks

The global financial markets have been volatile as of late. A number of issues, such as the Evergrande default threat, the 3-month high in US 10-year treasury yields, China’s ban on all cryptocurrency transactions, and of course COVID-19, have all contributed to the highly risk-off sentiment in the financial markets, including cryptos. 

However, it would seem that despite all these global issues, Solana (SOL) has been holding up well. Its recent overdue correction also seems to be slowing down, as the trading volume has been weakening steadily, which suggests that early buyers of SOL may soon be done taking profits. 

*SOL Daily Timeframe: Consolidating above the 50-day moving average

SOL: Uptrend is still intact

Looking at the daily price movements in SOL, we can see a definite slow-down in trading volume day by day, since the start of the correction in mid-September. During the correction, SOL hit a low of 116, from the highs of 216, which was a 46% downturn. Since then, the price of SOL has consolidated above its 50-day moving average (gray line) and it has been trading in a tighter range for the past few days, hovering at the 38.20% Fibonacci retracement level. As such, the major uptrend in SOL is still intact, as long as it does not fall below the 50-day MA and the major psychological support level of 100.00. 

Is it time to buy? 

Right now, we need more information and confirmation as to whether the SOL bears have indeed stopped selling down. It may be too early to tell at the moment, but the weakening of the trade volume is an early welcome sign for the SOL bulls. Referring to a previous article about support levels, observe how SOL behaves as it moves near these key areas. Here are some initial observations: