Solana Recovery: Bulls Have To Keep Shielding Against Price Dip To Key Level
10 August 2023 - 10:00AM
NEWSBTC
The Solana price exhibited a bullish trend during the recent
trading session, pushing it beyond the $24 mark. It surpassed a key
resistance hindering its progress for over a week. Within the last
24 hours, SOL saw a rise of around 6%, with a similar price
increase visible on the weekly chart. Related Reading: XRP Price:
Breaking This Key Resistance Could Propel Crypto To $21 By 2025 –
Analyst From a technical standpoint, Solana’s outlook appears
optimistic following the recent price shift. Both demand and
accumulation have expanded on the daily chart, reflecting positive
sentiment. Despite bullishness, the speed of SOL’s recovery depends
on its ability to swiftly overcome the immediate barrier, which had
previously acted as a tough resistance level. Additionally, the
bulls must ensure that the price remains above the local support,
as a drop below would invalidate the bullish thesis. Furthermore,
Solana’s market capitalization has improved, indicating a gradual
inflow of buyers into the market now. Solana Price Analysis:
One-Day Chart Trading at $24.84, SOL has successfully breached the
$23 resistance level, marking a growth of nearly 6%. This upward
movement has reignited buyer interest, yet for Solana’s recovery to
persist, it must exceed the $25 threshold. Breaking past this point
would enable the bulls to advance by an additional 8%, with a
potential target of $27. Conversely, the primary support levels for
this altcoin are situated at $24 and subsequently at $22. A drop
below $22 would revive bearish momentum, possibly prolonging a
bearish phase. Technical Analysis As Solana surpassed the $23
level, there was a surge in demand for the coin, leading to an
overbought condition. The Relative Strength Index rested just below
the 70 mark, indicating a predominance of buyers in the market.
Similarly, SOL maintained its position above the 20-Simple Moving
Average line, indicating buyers were steering the price momentum.
Notably, Solana was also above the 200-SMA (green) line, signifying
a state of bullishness. Despite its bullish trajectory, the
potential for a price pullback cannot be dismissed, considering
that SOL was still near the overbought zone. Aligned with the
heightened demand, SOL has generated buy signals on the chart. The
Moving Average Convergence Divergence (MACD), responsible for
gauging price momentum and shifts, has given rise to these green
histograms. These histograms correspond to buy signals, suggesting
that the price might experience a rise before a corrective phase
ensues. Related Reading: Bitcoin Retraces Back From $30,000 As
Profit Taking Spikes The Bollinger Bands, reflecting volatility,
displayed significant widening, implying potential price
fluctuations. However, these bands have also curved and ascended,
pointing to an impending northward movement in the upcoming trading
sessions. Featured image from Bloomberg, charts from
TradingView.com
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