As an experienced analyst, I’ve closely monitored Solana’s (SOL) price action over the past few weeks, and I believe we’re on the brink of a significant breakout. The altcoin market took a breather this weekend due to Bitcoin facing resistance at $67,500, but Solana’s downturn seems like a temporary correction rather than a bearish signal.
Over the weekend, the cryptocurrency market took a breather from its ongoing recovery, with Bitcoin hitting a roadblock at $67,500. As a result, Solana, ranked fifth in the crypto world, dropped by 2% to reach a current price of $169, representing a steeper decline than Bitcoin’s minor 0.2% decrease. Market observers see this dip as an opportunity for a brief rest following the intense rally earlier in the week. The stage could then be set for buyers to jump back in and push the market higher as a new week begins.
Solana Breaks $160 Neckline with Eyes Set on $210
Over the past three weeks in May, I’ve witnessed a remarkable bullish trend in Solana (SOL), as its price surged from $112 to reach a high of $168 – a 50% growth. This recovery, defined by a strong higher low, is a clear indication that buyers are actively accumulating during market dips, suggesting a significant shift in market dynamics. Furthermore, the increasing price has formed an inverted head and shoulders pattern on the chart, which is often interpreted as a sign of bottom formation for Solana.
On the 17th of May, the SOL price surpassed the $160 resistance level, signaling a bullish reversal in its price trend. Should this pattern persist, investors could fuel a post-breakout surge towards $210, potentially yielding a profit of approximately 24%.
With Bitcoin hovering around the $67,000 mark, Solana’s value encountered resistance due to an oversupply of coins, causing it to drop to $169. This minor setback serves as a test of Solana’s ability to maintain its position above $160, offering a strong foundation for potential further growth.
In other words, if the price of Solana falls below its current level, it could signal a bearish trend and possibly bring the cryptocurrency down to $138 again.
Technical Indicator
- Exponential Moving Average: A bullish crossover between the 20- and 50-day EMA should accelerate the recovery momentum in SOL price.
Relative Strength Indicator: The daily RSI slope above 60% assures an optimistic sentiment among traders for the near future.
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2024-05-19 22:49