Solana Coin Price Shoots 16%; Is It The Beginning Of A Recovery Rally?

While the crypto market eased up a bit from the overall downtrend, the Solana coin price benefited the most as it showed an 11% intraday jump. However, this growth could be the response of oversold coin value and investors accumulating cheaper rates. Thus, considering the overall trend is bearish, the current recovery is more likely a temporary relief rally.

Key points

• A daily candle closing above $12 may encourage SOL to 33% rise
• The 20-day EMA slope near $12 increases the resistance power of this level
• The 24-hour trading volume in the Solana coin is $538.5 Million, indicating a 163% gain

Source-Tradingview 

The 2022 end was one the most dreadful period for Solana holders as it lost immense market value due to the FUD concerned with the FTX crypto crash. During the downfall, the coin price plunged to a new lower support of $9.45, registering around a 95.71% loss from the all-time high of $260.06.

However, on December 29th, the daily candle showed a long lower price rejection, indicating the intense demand pressure from below. Thus, with sustained buying, the coin price rose 24.8% and reached a high of $12.

Also Read: Can Solana Price Make Ethereum Like Comeback From Mega Drop?

Nonetheless, the coin price currently trades at $11.15, and the high price rejection candle attached indicates the sellers have not thrown the towel yet. Furthermore, if the daily candle closes below $12, the sellers will continue to hand the upper hand, and prices may struggle to surpass the overhead resistance.

However, concerning the overall negative market sentiment, the current recovery is still to be considered a temporary rally before it shows suitability for upcoming trading days. Furthermore, a bullish breakout from $12 may prolong the price rally to 33% higher to hit $15.

Technical indicator

RSI: The rising RSI slope shot straight up from the oversold zone, indicating the Solana coin price is trying to stabilize the prior excessive selling. 

EMAs: the large gap between the EMAs(20, 50, 100, and 200) accentuates the overall downtrend.

Solana Coin Intraday Price Level

• Spot price: $11.37
• Trend: Bullish
• Volatility: Low
• Resistance level- $11.65 and $15
• Support levels- $9.4 and 7.6