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After a brief period of decline, the leading altcoin Solana (SOL) showed a strong recovery, rising by approximately 10% in the last few hours. This rise sparked optimism among investors and led to an increase in the bullish trend for the altcoin in the cryptocurrency market.
Unpredictability Continues in Altcoin
Despite recent gains, Solana’s price remains unpredictable as it hovers near a significant support level. Over the past few weeks, the altcoin‘s market cap has lost over $22 billion, reflecting high volatility in its price. However, the recent 9.39% rise in the last 24 hours and a 122.26% increase in trading volume indicate a potential shift in market sentiment. According to data from CoinMarketCap, Solana has fallen by 19.76% in the last 30 days.
On the other hand, the recent price movement has led to the formation of an inverted cup and handle pattern on Solana’s chart. This pattern typically indicates a bearish trend and potential issues for the altcoin. Nevertheless, the short-term rise has provided some relief to investors.
Technical Indicators for Solana
When examining technical indicators, the Simple Moving Average (SMA) on the daily chart is approaching a positive crossover, which could indicate increased price movement for Solana. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a decline in the red histogram, indicating stronger buying pressure compared to selling pressure. This potential bullish divergence suggests that the altcoin’s price may continue to rise in the near future.
If the overall bullish trend in the cryptocurrency market continues, Solana’s SOL is expected to gain more momentum and test the resistance level at $155. A breakout above this level could push the price to the upper resistance at $181.50.
In a reverse scenario, if the downtrend continues, Solana may retest the significant support level at $127. Failure to maintain this support could lead to the altcoin dropping to $100 in the coming weeks.
