The cryptocurrency market has witnessed significant fluctuations, with Solana (SOL) is experiencing a notable pullback to $170.27, creating a rising channel in the process. This recent market behavior comes after a potential recovery period that previously pushed SOL’s price above the $170.27 level.
As the price of this digital asset continues to trend within the channel, the question remains whether the bulls will regain control and push the price above the ascending channel or whether the bears will maintain their dominance and drive the price below it. In this article, we will examine Solana’s recent price movements using technical indicators to predict future trends and highlight key levels to watch.
Technical Analysis on the Current Solana Price Movement
On the 4-hour chart, Solana price is currently above the 100-day simple moving average (SMA), suggesting a potential resurgence of high momentum for SOL. Furthermore, the price faced resistance at the $170 mark, as indicated by two bullish candlesticks signaling this rejection.
The signal line of the 4-hour Relative Strength Index (RSI) indicator, which recently dipped slightly below 50%, is now attempting to cross back above the 50% mark. If successful, this crossover could indicate a potential price increase for Solana.
On the 1-hour chart, Solana is rising towards the 100-day simple moving average (SMA), indicating a potential upward movement as it may attempt to break above the level. Furthermore, the SOL price has established a bullish channel pattern on the 1-hour chart.
A breakout and close above the upper channel line could spark positive sentiment as the bulls may regain control. Lastly, the RSI indicator’s signal line on the 1-hour chart is also currently approaching the 50% mark, suggesting potential upward momentum.
Key levels to watch in case of a breakout
Considering the current positive recovery at $170, if Solana price breaks and closes above the upper boundary of the rising channel, it could continue its rise towards the $188 resistance range. If Solana manages to break above this resistance level, it could lead to further upward movement towards $205, along with other resistance points beyond.
However, if the Solana price breaks and closes below the lower boundary of the channel, it could drop towards the $160 support level. If the price breaks and closes below $160, it could trigger an additional bearish momentum, pushing the price towards the $118 support range or even lower.
At the time of writing, Solana’s price has decreased by 0.72%, trading at around $173 in the last 24 hours. The cryptocurrency has a market cap of over $80 billion and a trading volume of over $3 billion. There was a 0.71% drop in SOL’s market cap, accompanied by a 7.10% increase in trading volume in the last 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com