The market is showing signs of recovery today after a sluggish start to the week. Among the top altcoins experiencing a surge, Solana (SOL) stands out with a 9% increase in the last 24 hours.
Currently trading above $136, SOL’s price movement has caught the attention of many crypto traders, including myself.
What you'll learn 👉
Solana Price Analysis
SOL has demonstrated resilience by maintaining crucial support around the $126 level this week. This support zone has proven significant, as the price bounced back from similar levels in mid and late April when the market was in a downturn.
As of writing, SOL is trading at approximately $136.3, representing a 9% gain over the past day. This upward movement is particularly interesting when we examine the larger time frame.
Zooming out on the SOL chart reveals that the price has been trading within an ascending triangle pattern since last October when SOL was below $20. This pattern suggests a potential continuation of the upward trend.
Currently, SOL is approaching the B wave of this triangle formation. Based on this pattern, the next price target could be in the $150 area. This level aligns with the upper boundary of the ascending triangle and could act as a resistance zone.
It’s worth noting that the 200-day moving average is still below the current SOL price, sitting at around $133. This indicates that SOL is trading above its long-term average, which is generally considered a bullish signal.
The Relative Strength Index (RSI) is currently at 58, suggesting moderate buying pressure. While not in overbought territory, this level indicates growing momentum in SOL’s favor.
Interestingly, just this morning, the MACD (Moving Average Convergence Divergence) line crossed above the MACD signal line. This crossover is a bullish signal and it indicates the start of a new uptrend or the continuation of the existing one.
Read also: Bitcoin Price Analysis: Is BTC Set for a Bullish Reversal or Further Decline? Key Levels to Watch
SOL Price Prediction
Based on the technical analysis and price action observed, we can make some educated guesses about SOL price forecast:
- The $150 area appears to be within reach this summer, aligning with the upper boundary of the ascending triangle pattern.
- The $126-128 zone needs to continue acting as strong support. If this level is breached, it could spell trouble for SOL holders and potentially lead to a deeper correction.
- A more ambitious price target of $200 exists, but reaching this level will be challenging unless the overall crypto market experiences a significant boom. It’s important to remember that the price was rejected at this level on April 1st following a strong performance in March.
Conclusion
As we’ve seen, Solana’s recent price surge is leading altcoin recovery today.
But let’s face it – trying to predict crypto prices is like trying to guess what a cat will do next. One minute SOL’s purring contentedly at $136, the next it might be clawing its way to $150 or taking a nap back at $126.
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Show more +So, what’s an investor to do? Keep your eyes open, your wits sharp, and make sure to follow useful analysis like we provided in this article.
One thing’s for sure – SOL price movement won’t be boring in the second part of this year. So grab your popcorn, do your homework, and enjoy the show. Just remember, in the world of crypto, the only certainty is uncertainty. And isn’t that half the fun?
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