Solana has been a standout performer, surging over 1000% since the beginning of the year and garnering significant market attention. The sudden spike in SOL’s price catapulted the trading volume to exceed $1 billion in a remarkably short time.
Despite reaching new yearly highs, recent indications suggest that the SOL price is now being influenced by bearish trends.
In the past week, the price of Solana surged from $67 to $118, reaching new yearly highs at $126.26 and returning to levels seen before the FTX incident. While there have been consecutive bearish candles, in the broader picture, it could be seen as forming another higher low. However, technical indicators are signaling a potential bearish trend in the near term. Despite this, the bulls seem confident and are expected to hold their ground in anticipation of the next price movement.
Solana’s Price Outlook: Indicators Signal Potential Shift
Examining Solana’s short-term trade, the price is expected to stay in a sideways trend with a neutral Relative Strength Index (RSI), indicating neither overbought nor oversold conditions. However, on the daily and weekly timeframes, the RSI labels suggest overbought conditions, hinting at a possible upcoming price correction, while other indicators hint at a potential reversal.
Key indicators include Bollinger bands, positioned at 155, indicating high market volatility, and the MACD signaling bullish trends. Long-term support levels are identified at $105 and $75, with resistance levels at $133 and $171.
In summary, Solana’s price maintains a bullish momentum in both short and long terms. Despite the overbought RSI levels suggesting a potential correction, the combination of indicators suggests a chance for a final ‘buy at the dip’ opportunity before a potential significant upswing to higher targets.
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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