Solana Coin Is On Six-Day Winning Streak, But How Long Will This Recovery Last?

While the overall market is still struggling with uncertainty, the Solana coin price outperformed a majority of cryptocurrencies this week. This ongoing recovery rally was initiated when the prices rebounded from the 2022 low of $8 on December 29th. Thus, the SOL price rose in a V-shaped manner with rising volume, indicating aggressive buying in the market. 

Key points

• The rising Solana price may struggle to surpass the $15 barrier
• However, the $15 breakout could encourage SOL to a more 20% rise.
• The 24-hour trading volume in the Solana coin is $1.39 Billion, indicating a 136% gain.

Source-Tradingview

The Solana coin price rose for six consecutive days and registered 34% growth to reach the current trading price of $13.6. Furthermore, this bullish reversal gave a massive breakout from the local resistance of $11.3 and $12.8, providing additional support for buyers to climb higher. However, this altcoin may revert lower to test the $11.3 mark as potential support.

If the Solana coin sustains the potential retest phase, the prices should rise 8.21%  and challenge the monthly resistance of $15. The coin holders should look out for the aforementioned resistance as it had strictly restricted bullish growth from mid-November to December. 

Also read: Solana (SOL) Price Spikes As Dogecoin Killer BONK Gains Hype

Concerning the overall downtrend, this recovery is still considered a temporary rise and may face phase some correction before it develops into an established bullish rally.

Thus, a higher possibility of price reversal from the $15 resistance may encourage a sideways trend in Solana price for a few trading sessions.

On a contrary note, if the Solana price gave a daily candle closing above the $15 mark, the bullish momentum will intensify, and the price may rise 20% to hit the $18 mark.

Technical indicator

Relative strength index: the daily-RSI slope showed a sudden jump from the oversold region to above the neckline of bullish territory, accentuating the intense buying pressure in the market. 

EMA’s: the recent price jump pierced the 20-day EMA, offering an early sign of price recovery.

Solana coin price intraday levels

• Spot price: $13.58
• Trend: bullish
• Volatility: Medium
• Resistance level- $0.373 and $0.41
• Support level- $0.31 and 0.26