Solana Price Prediction As Buyers Challenge 300-Days Resistance; Will Recovery Continue?

Solana Price Prediction: As optimism gradually returns to the cryptocurrency arena, the SOL coin has embarked on a robust recovery, recently hitting a 10-month high of $35. While the ongoing bullish momentum appears sustainable, a long-standing resistance trendline, situated around the $35 mark within a channel pattern, suggests that this altcoin could face considerable selling pressure. Thus, can this rally push past this pivotal level?

Also Read: VanEck Prediction on 10,600% Solana Price Rally By 2030 Triggers Debate

Overhead Supply May Trigger New Correction

• The rising channel pattern leads the ongoing uptrend in SOL price
• A potential breakout from the overhead trendline will accelerate the bullish momentum
• The 24-hour trading volume on the Solana coin is $1.04 Million, indicating a 142% gain.

Source-Tradingview

On the daily chart, the Solana price trajectory has formed a V-shaped recovery from its low of $17.4. The upswing is backed by increasing trading volume, signaling buyer confidence and a concerted effort to push the asset higher. 

In the past two months, altcoin has seen an impressive 102% surge, bringing it to its current trading price of $35. However, this bullish wave appears to be part of a larger rising channel pattern that has been dictating the SOL price action for the past 10 months. 

With an intraday gain of 6.58%, the buyers tested the upper boundary of this channel, eyeing a bullish breakout. Historical behavior indicates that attempts to breach this dynamic resistance often result in amplified sell-off pressure, leading to significant corrections. 

New market participants should exercise caution and await a confirmed breakout above this crucial resistance level. If a breakout does occur, the resulting rally could potentially elevate the asset to $55.

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

Can SOL Price Fall Back to $30?

Amidst last week’s volatility in the crypto market, the SOL price experienced a minor dip on its daily chart, briefly retracting to an immediate support level at $32. However, this pullback was short-lived, as buyers quickly drove prices back up. With this altcoin now at a make-or-break level, a slide below $32 would offer a stronger case for a trend reversal.

• Average Directional Index: The daily ADX reads at 53%, hinting that the current bullish momentum might be nearing exhaustion, thus opening the door for a potential pullback.
• Exponential Moving Averages: The sharp incline in daily EMAs(20, 50, 100, and 200) underscores the market’s strong bullish sentiment.