SOL Price Analysis: After Retreating to $22; What Lies Ahead for SOL?

Solana Coin SOL

The price movement of SOL reveals a retreat to the $22 level, encountering resistance at $25. This pullback involves a reevaluation of the previously breached area at $22, thereby enhancing the likelihood of a reversal following the retest. If a reversal materializes, it could serve as a catalyst for Solana’s upward trajectory, potentially propelling it past the $30 threshold.

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Following a significant bearish impact during the October uptrend, Solana (SOL) is now in a stabilization phase, cautiously navigating critical support levels. Buyers are actively seeking a potential turning point to establish a firm foundation for reigniting upward momentum.

These strategic maneuvers contribute to the Solana price forecast, which envisions a bullish path for SOL in the forthcoming altseason.

Source: Tradingview

The SOL coin’s price has been on a downward trend after a rapid rise in early 2023. This correction phase has formed a falling channel, which started after being rejected at the $30 mark, causing a quick 35% drop to $17.75.

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However, within this falling channel, Solana saw a 10% jump, leading to a 35% increase by October 1st. The uptrend broke through the crucial $20 resistance zone.

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The current SOL price action shows a pullback as it was strongly rejected at $25, creating a sideways movement between the $22 support and the $25 resistance.

This pullback phase is a retest of the previous breakout, suggesting a potential positive reversal. The trend also indicates the formation of a morning star pattern, supported by a 200-day EMA.

As of now, SOL is trading at $22.15 with a 0.14% intraday growth, featuring two doji candles. After a sharp correction a couple of days ago, this suggests the possibility of a morning star pattern.

Technical Indicators:

Exponential Moving Averages: The breakout rally crossed both the 50 and 200-day EMAs, indicating a higher chance of a golden crossover.

RSI indicator: The RSI has made a sharp turn from the overbought zone to drop below the 14-day SMA. However, the RSI line remains above the midpoint, indicating there is still bullish potential in the uptrend.

Can SOL Price Hit $30?

Should the SOL coin price maintain its position above the 200-day EMA, the chances of an ongoing uptrend reaching $28 become notably stronger. Additionally, there’s potential for a golden crossover, which could trigger a bullish sequence aimed at recapturing additional resistance levels.

However, if the price falls below the critical EMAs and heads into a downtrend, it could jeopardize the bullish momentum, particularly around the psychological support level of $20. In this scenario, the Solana trend may face a retest at $19.45.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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