In recent times, the price of Solana has witnessed a considerable push up, which makes the coin publish an important resistance level. Over the last 24 hours, SOL has rallied close to 20%, and within a week, the altcoin has appreciated close to 40%.
As the price of Bitcoin remains above $20,000, most altcoins show positive price momentum on their respective charts. If Bitcoin continues to rise higher, then the short-term bullish momentum will prevail in the market.
Solana’s technical outlook has pointed to bulls, but the chart also shows that if the coin is overbought, SOL will eventually witness a price correction. Accumulation remains high on the chart as demand for the coin has been high for months.
Solana can provide buyers with the opportunity to buy; The coin can retrace the chart and then go up again. Solana’s market capitalization is increasing, which means there is an increase in purchasing power. Currently, Solana is trading at a 90% discount to its peak, which is guaranteed in 2021.
Solana Price Analysis: One Day Chart
SOL is priced at $25 at the time of writing. Solana pierced through many levels of resistance. The $25 price tag has acted as a stiff resistance for the coin; It is very important that the SOL stays above this area so that the bullish momentum does not disappear.
Overhead resistance for the coin is at $31, but before the altcoin reaches that level, SOL will have to trade south. Local support for the coin is at $21.
The support area between $21 and $18 will give traders an opportunity to enter. The number of Solanas traded in the last session increased and turned green, which means that the coin represents bullish momentum.
Technical Analysis
SOL continues to show overbought tendencies, the asset is overvalued. Despite a small correction in demand, the accumulation for the coin is taken through the overbought area again.
The Relative Strength Index (RSI) is parked at the 70 mark, which is a sign that buyers are outnumbering sellers on the daily chart. Moreover, the price of the asset is above the 20-Simple Moving Average (SMA) line, which means that buyers are driving price momentum in the market.
Solana is also above the 50-SMA line (yellow), which is a bullish extension sign. On the flip side, the SOL cross of death is shown where the 50-SMA crosses above the 20-SMA line, and obviously falls in price.
The bulls are still there for Solana, but the buy signal for the altcoin is decreasing in size. Moving Average Convergence Divergence (MACD) represents price momentum and reversals. The MACD displays a falling green histogram, which means a bearish buy signal on the chart.
The Bollinger Bands, which indicate volatility, have also broken, meaning that the coin will witness significant price fluctuations over the next few trading sessions.
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