Technical analysis in the cryptocurrency market, especially for those trading in the futures market, is an indicator that investors must continuously follow. What kind of clues does technical analysis provide for Solana, which is trading at $59.53 at the time of writing, and Avax at $21.05? We examine this with a detailed chart analysis and key support and resistance levels.
Solana Chart Analysis
The first notable formation on Solana’s four-hour chart is the ascending channel formation. The price’s rapid momentum increase is a factor that steepens the formation’s slope. Following the rise on November 16th, Solana faced selling pressure but then entered a horizontal trajectory and managed to gain upward momentum with the strength from the support line.
The most important support levels to follow on the four-hour chart for SOL are; $58.39, $55.28, and $51.42, respectively. A four-hour bar closing below the $55.28 level will invalidate the formation structure and cause SOL’s price to lose significant momentum.
The most important resistance levels on the four-hour chart for SOL are; $61.79, $66.42, and $71.26, respectively. A bar closing above the $61.79 level, which has been a major obstacle in recent bar formations, will allow SOL’s price to gain momentum in the short term.
Avax Chart Analysis
The first notable formation in the two-hour Avax chart is a triangle formation. The bar formations squeezed in a narrow area within this formation structure and then a breakout of support or resistance plays a major role in determining the price direction. AVAX‘s price finding support at the EMA 200 (red line) level is an important factor for a short-term rise.
The most important support levels to follow on the two-hour chart for AVAX are; $20.70, $20.06, and $19.55, respectively. Especially a bar closing below the $20.70 level, which plays a significant role in recent closures and intersects with the EMA 200 level, will lead to AVAX facing selling pressure in the short term.
The most important resistance levels on the two-hour chart for AVAX are; $21.58, $22.32, and $23.05, respectively. Especially a bar closing above the $21.58 level will enable the formation to work upwards and AVAX’s price to gain momentum.
- Technical analysis reveals trends in Solana and Avax.
- Support and resistance levels are crucial for price momentum.
- Chart formations offer insights into potential price directions.
