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The Solana price rose 4% over the past 24 hours to trade at $86.17 at press time as buyers scoop up SOL at a discounted price.
The Solana Price Attempts to Escape a Negative Channel
4-hour chart for SOL/USDT (Source: TradingView)
The Solana price is attempting to overcome the upper barrier of a medium-term negative price channel. This is after buyers identified its price drop over the past 24 hours as a buy opportunity. Should SOL escape the channel in the next 8 hours, it may then attempt to overcome the $90 resistance level in the following 12 hours. However, a rejection from the $90 threshold could lead to the Solana price retracing to back within the negative channel. Conversely, a break above $90 could set the altcoin up to attempt another challenge at a major bearish trend line.
The Solana price has been trading under this trend line since Dec. 25, 2023. Therefore, overcoming this level may be seen as a major bullish development. This could give SOL the breathing room needed to overcome $100 before potentially rising to as high as $100 in the following couple of days.
This bullish thesis will likely be invalidated if the Solana price falls below $82.35 again within the next 24 hours. In this alternative scenario, the crypto may enter into another strong downwards move towards the $70 support level in the short term.
Technicals Point to a Continued Rise
Technical indicators on SOL’s 4-hour chart suggest a bullish move is more likely to play out in the short term. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators are flagging bullish.
Buyers have recently gained the upper hand against sellers as evident by the RSI which crossed above its Simple Moving Average (SMA) line in the last 24 hours. The RSI is also still positively sloped, which may indicate that buyers are continuing to gain strength against sellers. In addition to this, the MACD line crossed above the MACD Signal line earlier in today’s trading session. This is a significant bullish technical flag that signals the Solana price may have entered into a short-term positive cycle recently.
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.
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