SOL faces profit-booking near $209, but the trend favors the bulls as long as the price remains above $185.
Nasdaq-listed company DeFi Development Corp said on Monday that it had acquired 141,383 Solana (SOL) between July 14 and July 20, boosting its treasury to 999,999 SOL. The company said it had $5 million at its disposal for future SOL purchases.
Another positive sign for SOL is that SSK, the SOL staking exchange-traded fund (ETF) from REX-Osprey, crossed $100 million in assets under management in just 12 trading days after its launch on July 2.
Could treasury and ETF buying boost SOL further? Let’s analyze the charts to find out.
SOL reached the $209 resistance on Tuesday, where the bears are mounting a strong defense.
The first support on the downside is at $185. A solid rebound off $185 suggests the bulls are trying to flip the level into support. That improves the prospects of a break above $209. If that happens, the SOL/USDT pair could surge toward $240. There is resistance at $220, but it is likely to be crossed.
This positive view will be invalidated in the near term if the price continues lower and breaks below the 20-day exponential moving average ($172).
Related: How high can XRP price go from its $3.66 multimonth high?
The pair has started a pullback, which has dipped below the 20-EMA on the 4-hour chart. That suggests the short-term buyers are booking profits. The next support is at $185, which is a crucial level to watch out for. If the price turns up from $185, the pair could retest the $209 level. A break above $209 could resume the uptrend.
On the other hand, a break below the 50-simple moving average signals the start of a deeper correction to $170.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
