Solana Price Analysis: Here’s Why $SOL Price Recovery could Surpass $32

Solana Price Analysis: From Mid-June to July, the Solana price witnessed a parabolic growth and brought the recovery sentiment among market participants. From the June 10th low of $12.8, the recovery rally has currently topped $32.3 registering a growth of around 148%. However, the coin price couldn’t sustain above $30 and triggered a bearish correction. Can this minor outback fuel a rally above $30?

Also Read: Solana Introduces Ethereum Virtual Machine Rival “Solang”

Solana Price Daily Chart

• The correction backed by low-volume activity hints the current downfall is temporary
• A bullish breakout overhead resistance will offer buyers significant support to carry a recovery above $30
• The 24-hour trading volume on the Solana coin is $471.5 Million, indicating a 23% loss.

Source-Tradingview

Amid the current uncertainty in the market, the Solana price turned down from the $30.2 barrier and tumbled 16%. However, this correction phase can be marked using two converging trendlines indicating the formation of a bullish pennant pattern. This continuation pattern usually occurs during an ongoing uptrend, suggesting that the uptrend is likely to resume after a brief consolidation period.

By the press time, the Solana price trades at $25.49, with an intraday loss of 0.24%. However, the recent downfall is still above 38.2% Fibonacci retracement level indicating this pullback is healthy for a higher price rally.

Interested traders must wait for a breakout of the overhead trendline as a signal for uptrend continuation.

[converter id=”sol-solana” url=”https://coingape.com/price/converter/sol-to-usd/?amount=1″]

Will the SOL Price Surpass $30?

Until the converging trendlines of the pennant pattern are intact, the Solana price may prolong its correction phase longer and lower. Therefore, an upside breakout from the resistance trendline with a daily candle closing will intensify the bullish momentum and lead to a recovery rally above $32. In theory, the flag and pennant pattern provides a predetermined target same as the pole-length shot from the breakout point. Thus, under the influence, the coin price could reach the $42 mark.

Exponential Moving Average: The SOL price above the daily EMAs(20, 50, 100, and 200) indicates the overall trend is bullish.

Average Directional Index: The ADX price at 44% indicates the recovery rally must be reaching maturity and thus, the current correction will restore the buyers’ strength.