Why Is Solana ($SOL) Price Up?

Solana (SOL) has recovered well today after the recent market crash, with its price up around 8% to trade around $85 at the time of writing. However, SOL is still down 15% over the last 7 days, in line with plunges seen across other altcoins.

Technically, the signs are pointing towards continued upside potential for SOL in the short to medium term. The Relative Strength Index (RSI) on all timeframes is floating between 45 and 50, indicating SOL is no longer oversold and has room to move higher after becoming extremely oversold during the crash.

Additionally, SOL has strong support around the $80 level. This is not only a psychological support point, but lines up with the 1.618 Fibonacci retracement level. SOL has bounced nicely off this zone so far.

The 200-day moving average also comes into play around $45. This will likely act as strong support on any pullbacks for SOL. As long as SOL holds above the 200-day MA, the overall technical uptrend remains intact.

According to technical analysis from altFINS, SOL remains in an uptrend on the medium to longer-term timeframes, despite some shorter-term consolidation. Specifically, SOL is trading within what looks to be a bull flag continuation pattern on its chart.

This suggests the previous uptrend is likely to resume, especially on a decisive breakout above the pattern resistance around $100. The measured move upside target from this bull flag stands around $125, so that will be the next major test if SOL can regain its bullish momentum. Support to watch is around $80-$85, with key downside invalidation trigger being a drop back below $80.

So in summary, SOL’s price recovering today is likely due to the oversold bounce and key support holding for now. If $80 continues to hold as support, technically SOL looks set to move higher back up to test pattern resistance around $100 in the near term. Upside conviction really builds on a bull flag breakout and close above $100 for measured move target closer to $125 next.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!