Solana rally: Bulls must continue to protect themselves from a price drop towards a key level

Krypto News Aktuell auf Deutsch

Solana Price Breaks $24, Breaks Above Key Resistance

In the last trading sessions, Solana price shows an upward trend and managed to cross the $24 mark. This was significant resistance that hampered Solana's progress for over a week. Over the past 24 hours, SOL is up around 6%, with a similar price rise visible on the weekly chart.

From a technical perspective, Solana's outlook appears optimistic after the recent price lag. Both demand and accumulation have expanded on the daily chart, reflecting positive sentiment.

However, the success of Solana's recovery will depend on the ability to quickly overcome the immediate resistance, which previously acted as a hard resistance level. Additionally, bulls need to ensure that price remains above local support, as a decline below would invalidate the bullish thesis. The improvement in Solana's market capitalization indicates a gradual influx of buyers.

On the one-day chart, Solana’s price is $24.84. It successfully crossed the resistance level of 23 US dollars, representing a growth of almost 6%. This upward movement has revived buyer interest. For Solana's recovery to continue, the price must cross the $25 threshold. A breakout above this point would allow the bulls to rise another 8%, with a potential target of $27.

Primary support levels for this altcoin lie at $24 and then $22. A fall below US$22 would restart the bearish momentum and potentially prolong a decline phase.

Technical analysis shows strong buying power on the one-day chart. When Solana crossed the $23 threshold, demand increased sharply, leading to an overbought situation. The Relative Strength Index was sitting just below the 70 mark, indicating buyer dominance.

Solana has maintained its position above the 20 simple moving average line and has also been above the 200 SMA line, indicating an upward trend. Despite its bullish trend, the potential for prices to fall cannot be ruled out considering that Solana is still close to the overbought zone.

The Moving Average Convergence Divergence (MACD), which is responsible for measuring price momentum and shifts, generated buy signals on the chart. This indicates that the price could continue to rise before entering a correction phase.

Bollinger bands have widened significantly due to volatility, indicating possible price fluctuations. However, they also made an upward curve, indicating an imminent upward movement in the coming trading sessions.

Overall, Solana price is showing an upward trend and has broken through important resistances. Technical indicators indicate a continuation of the price rise, although caution is required as the price is still close to the overbought zone. Traders and investors should closely monitor price action in the upcoming trading sessions.