Amidst FTX liquidations, the price of SOL Coin has been shaken. But what does reclaiming the $20 zone mean? While competitors like AVAX Coin struggle with high token inflation, SOL Coin is feeling the pressure from all sides. With institutional sales and projects fleeing the network, now FTX liquidations are also in the spotlight.
Why is SOL Coin Rising?
With a weak recovery in overall market sentiment, the price has surpassed $20. Additionally, it was announced today that a partnership with OKX for the SAGA phone has been made. OKX will be the first exchange on the Solana phone, and investors may be excited about the benefits this could bring to the project. If Bitcoin price can stay above $27,400, general market support may continue for SOL Coin.
Last week, the price confirmed the $18 long-term horizontal support and saw a $2 increase. While weekly time frame readings indicate a downward trend, the daily time frame contains several bullish signals. So, what’s next?
SOL Coin Price Analysis
According to the readings on the weekly chart, SOL has broken out of the long-term resistance line and surpassed $32, reaching a new annual high. Now, this region needs to be retested, and the current position of the resistance is at $28. Weekly RSI shows a bearish signal, and if there are closures below $18, we may see a retracement to the decreasing resistance zone at $13.
The daily time frame technical analysis indicates that the rally will continue. This analysis is based on both price movement and RSI. On September 11th, the SOL price bounced off a long-term rising support line that has been in place since the beginning of the year. Such bounces from long-term support lines can lead to impressive rallies.
Readings on the 6-hour chart also support the bullish scenario. The possible scenario currently indicates a near 35% increase. For this upward movement to occur, the price will need to continue closing above $18. If it fails to do so, a drop to $13 with a 38% decrease should not be surprising.
At the time of writing, Bitcoin price is at $27,145.
