Aaryamann Shrivastava
FXStreet
- Solana price has been hovering around $16 after registering an almost 70% increase in value.
- Solana price needs to maintain the support at $16 in order to rise towards the critical resistance at $19.30, coinciding with the 23.6% Fibonacci Retracement level.
- If this support level is lost, SOL has multiple chances to bounce back before tagging $11.70, after which the bullish thesis would be invalidated.
Solana price was severely impacted after FTX announced its bankruptcy, which led to one of the biggest failures in the crypto market’s history. SOL took an extra beating for being a venture of FTX’s sister company, Alameda Research. Nevertheless, the altcoin might be coming closer to recovering its losses soon.
Solana price nearing critical resistance level
Solana price is gearing up to be a potential long for traders as the cryptocurrency is inching closer to reclaiming a crucial support floor. Trading at $16.38, SOL might be able to extend its almost 70% recovery observed in the last few days, provided it can tag the $20 mark.
This would be possible if the altcoin manages to sustain the current bullish momentum and breach the resistance at $17.89. This would allow Solana price to tag the critical resistance at $19.30.
This level also coincides with the 23.6% Fibonacci Retracement of the peak and trough at $36.91 to $14.05, respectively. Thus flipping it into a support floor would enable SOL to initiate a recovery of the November 2022 losses.
SOL/USD 4-hour chart
The Moving Average Convergence Divergence (MACD) indicator suggests that Solana price is actively bullish. The bullish crossover observed on MACD is sustained as the indicator line (blue) stands far above the signal line (red). If this bullishness is maintained, SOL could observe another few days of green candles.
SOL/USD MACD indicator
However, if this bullishness is lost, corrections could dominate the price action resulting in SOL losing the support of $15.90. Bulls would still have multiple chances to initiate a bounce back before Solana price hits the critical support at $11.70.
But if the altcoin registers a daily candlestick close below this level, the bullish thesis would be invalidated, leaving the Ethereum-killer vulnerable to a decline toward $10.24.
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