Post-Correction Rally May Drive Solana Prices Above $38.6; Enter Now?
With the recent news of Google cloud becoming a Solana validator, the SOL price witnessed a significant inflow. On November 4th and 5th, the bullish rally showed a 26% gain and hit the monthly resistance of $38.65. However, the supply pressure at this resistance triggers a minor correction with a pullback opportunity for interest traders.
Key points
- The combined support of 0.382 Fibonacci retirement level and $34.5 offers a suitable launchpad to resume price recovery.
- Significant growth in daily-RSI slope validates high momentum recovery in Solana.
- The 24-hour trading volume in the Solana coin is $1.827 Billion, indicating a 9% loss.
Source-Tradingview
The late October recovery rally in the crypto market triggered a sharp recovery in Solana price. The bullish reversal registered a 40% growth over the past two weeks and breached local resistances such as $30.5 and $34.5.
However, the altcoin could not break the $38.65 supply zone, resulting in a minor correction to the breached resistances. A volume retest candle indicates a temporary pullback which should eventually lead to the resumption of prevailing recovery.
The post-correction rally could push the prices above the monthly resistance of $38.65.
A bullish Pattern S+potted In Solana’s weekly chart
Source-Tradingview
The Solana price shows a double bottom pattern in the weekly time frame chart. This bullish pattern is well known for trend reversal and offers a long position entry to interested traders. Thus, a breakout from the $38.65 barrier should intensify the bullish momentum for a rally to $47.5.
The $47.5 level stands as a neckline resistance for the aforementioned pattern, holding huge growth potential upon its breakout.
Conversely, a daily candle closing below $34.5 support will weaken the bullish thesis.
Technical indicator
MACD indicator: the MACD and signal lines jump above the neutral zone with a significant gap indicating growth in underlying bullishness.
EMAs: the rising coin price recently breached the 100-day EMA slope, which offers an extra edge for bull rally resumption. Moreover, a bullish crossover between the 20-and-50-day EMAs should attract more buyers in the market.
Solana Price Intraday Level
- Spot price:35.19
- Trend: Bearish
- Volatility: Medium
- Resistance levels: $38.65 and $43.2
- Support levels: $34.5 and $30.5
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