|

Can Solana price trigger a 40% rally before the broader crypto market bullish cues disappear?

  • Solana price has risen by more than 30% in the span of ten days to trade at $24.85.
  • The Ethereum killer is noting bullish indications which could push SOL past the critical resistance at $28.55.
  • If the altcoin ends up being overbought, the price could pull back, and a decline below $21.07 would invalidate the bullish thesis.

Solana price is nearing complete recovery from the downfall that took place back in November 2022. The cryptocurrency is close to breaching the critical resistance that has remained untested for more than three months now.

Solana price at the top

The uptrend that started at the beginning of this year has resulted in the altcoin rising by more than 166% to trade at $24.89 at the time of writing.

The altcoin faced some corrections about a week ago, but the broader crypto market bullish cues would come in handy to push the altcoin further beyond the critical resistance at $28.55.

A similar indication is visible on the Moving Average Convergence Divergence (MACD) indicator as well, which just witnessed a bullish crossover. The MACD line (blue) crossing over the signal line (red) suggests a price rise may not be too far from happening.

SOL/USD 1-day chart

SOL/USD 1-day chart

Thus if Solana price manages to flip the critical resistance at $28.55 into support, the altcoin would be able to bounce further high toward $36.92. Marking this 40.94% rise and potentially breaching it would enable SOL to break a three-month barrier.

But at the same time as the Relative Strength Index (RSI) suggests the coin is nearing the overbought zone above 70.0. If SOL slips into it, the price could witness some pullback which could result in a drop to the critical support level of $21.07.

Solana MACD and RSI

Solana MACD and RSI

This level also marks the 38.2% Fibonacci retracement of $36.90 to $11.81. A daily candlestick close below this level would invalidate the bullish thesis of a 40% rise and push Solana price to test the monthly lows of $17.61.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

More from Aaryamann Shrivastava
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.