|

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:

Editor's Picks

Solana Price Forecast: SOL consolidates as ETF inflows and on-chain activity rise

Solana (SOL) edges lower on Tuesday, following a 3% rise to start the week, extending its consolidation around the $100 psychological mark. Institutional confidence holds firm in the layer-1 blockchain, with $11 million in inflows on Monday, showing signs of increased risk appetite ahead of the CLARITY Act cloture vote scheduled for Tuesday.

CLARITY Act faces fresh pressure ahead of key Senate cloture vote
The CLARITY Act is facing fresh opposition from a bipartisan group of state attorneys general ahead of a key Senate vote, with the officials urging lawmakers to reject the legislation unless changes are made to preserve state enforcement powers.
Ripple and Stellar outlook: Extend gains as derivatives support upside

Ripple and Stellar extend their gains after surging over 6% and 8%, respectively, on the previous day. In addition, improving derivatives metrics support a bullish bias, signaling further gains for both altcoins. Derivatives data shows bullish bias among traders. CoinGlass’ long-to-short ratios for XRP and XLM read 1.15 and 1.35, respectively, on Tuesday.

Crypto Overview: Bitcoin remains volatile amid CLARITY Act vote – Zcash, Stellar rally
Bitcoin (BTC) holds steady around $78,000 on Tuesday, sustaining its roughly 2% recovery from the previous day. Broader cryptocurrency market volatility remains elevated ahead of the scheduled CLARITY Act cloture vote on Tuesday. Zcash (ZEC) and Stellar (XLM) retain bullish momentum, emerging as the top performers over the last 24 hours.
Bitcoin: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.