Constructive Pullback Set SOL for Higher Recovery
The recent reversal in the SOL price from the 38.2% Fibonacci retracement level suggests that the correction allowed buyers to regain bullish momentum. Additionally, the rising 100 and 200-day Exponential Moving Averages (EMA) indicate a bullish long-term trend. Moreover, the 24-hour trading volume for Solana is $2.1 billion, signifying a 60% gain.
During a broader market downturn and challenges with the Bitcoin ETF, Solana experienced a significant correction, dropping from $126 to a low of $79. However, it found strong support at the confluence of $80 and the 38.2% Fibonacci retracement level. With the overall crypto market showing signs of recovery, including Bitcoin’s rise above $42,000, SOL managed to rebound from this support level.
If the current bullish trend continues, buyers are likely to target the immediate resistance at $102, which aligns with the 50% Fibonacci retracement level. Breaking above this resistance could potentially drive SOL’s price even higher, possibly reaching the previous high of $126. Analysis of the daily chart suggests that such a rally could complete a “Cup and Handle” pattern, indicating a significant trend reversal for Solana.
Is Solana Price Ready For Uptrend?
The formation of the “Cup and Handle” pattern on Solana’s chart over the past two years suggests a long-term bullish impact on its price. A breakout above the $126 neckline resistance would indicate a trend reversal and the end of an accumulation phase. With sustained buying, the post-breakout rally could target an initial level around $256.
- Exponential Moving Average: The recent rise above the 20 and 50-day EMAs indicates a return to the recovery trend for SOL’s price.
- Directional Moving Index: A potential bullish crossover between the DI+ and DI- could further accelerate the market’s bullish momentum.
Related Articles:
- 7 Reasons To Buy Solana (SOL) This Year
- Solana Price: Will Solana Price Recover In 2024?
- SOL Price Jumps 5.5% As Solana Unveils Token Extensions
Hot Take: Solana Shows Resilience Amid Crypto Market Recovery
The Solana price has demonstrated remarkable resilience by staying above the psychologically significant level of $80 during the ongoing relief rally in the cryptocurrency market. With constructive pullbacks, strong support levels, and potential breakout patterns, Solana’s recovery appears sustainable. The rising trading volume and positive indicators such as Exponential Moving Averages and Directional Moving Index also contribute to its bullish outlook. If the current trend persists, SOL may experience further gains and potentially revisit its previous high. Investors should closely monitor Solana as it shows promising signs of an uptrend.
By
By
By
By