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