Table of ContentsToggle
The Solana price jumped more than 2% over the past 24 hours to trade at $100.97 at press time as investors buy back into the promising Layer-2 project.
The Solana Price Breaks Negative Trend Line
4-hour chart for SOL/USDT (Source: TradingView)
The Solana price was able to break above a medium-term negative trend line over the past 24 hours. A positive price channel has also formed on SOL’s 4-hour chart after the altcoin printed a series of higher highs and higher lows over the past couple of days.
Currently, the Solana price is looking to establish a solid foundation above the $100 mark. Should it close three consecutive 4-hour candles above this level, it may continue to print higher highs and higher lows in the following few days. As a result, the Solana price may attempt a challenge at the $110 resistance level in the short term. With enough buy pressure, it could even overcome this barrier as well.
This bullish thesis may be invalidated if the Solana price fails to establish a position above the $100 mark during today’s trading session. In this alternative scenario, the Solana price may drop back below the negative trend line. Traders may then respond to this potential development by initiating a wave of sell volume. SOL could potentially plummet to $90 as a result.
Bulls Still Standing Strong
SOL’s bullish momentum has simmered down following its break above $100, as evident by the negative slope of the Moving Average Convergence Divergence (MACD) Histogram. Nevertheless, the MACD line is still positioned above the MACD Signal line, which indicates that the Solana price is still in a positive trend.
In addition to this, the Relative Strength Index (RSI) is positioned above its Simple Moving Average (SMA) line. This is generally seen as a sign that buyers are stronger than sellers. The indicator also suggested that another bullish move may soon ensure, as the RSI is positively sloped towards overbought territory.
The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Comments