Solana (SOL): bulls are eager for control after the price recovered by 30%
Date: 2023-07-05 Author: Karina Ziganova Categories: BLOCKCHAIN
The price of the Solana (SOL) token has been rising since June 10, and on June 29 it recovered above a critical resistance level. In the near future, growth may continue
Over the past month, the Solana project has been going through difficult times due to the aggressive tightening of the screws by US regulators. It seemed that the SOL token was eager to update the annual lows. However, now the price dynamics demonstrate that hope is on the horizon.
Solana has recovered over important support
As the results of the technical analysis of the daily chart show, the SOL rate has recovered by 33% since June 10. The beginning of this rally was preceded by a very long lower wick, which is considered a sign of pressure from buyers (green icon).
The significance of this growth is underlined by the fact that the price has won back the horizontal area of $17. After the previous bearish breakout, this area was expected to offer resistance. However, after an initial rebound on June 20 (red icon), the price of SOL climbed above this area and peaked at $20 on June 30.
SOL is now trading slightly below the downward resistance line that has been on the chart since April 17. A break above it could accelerate the pace of growth and eventually confirm the start of a bullish reversal.
The daily Relative Strength Index (RSI) also gives a bullish signal. This momentum indicator is used by traders to assess whether the market is overbought or oversold.
Values above 50 and an upward trend indicate the advantage of the bulls, and vice versa. In this case, the RSI index has risen above 50 and is rising, which is a strong sign of a bullish trend.
SOL Forecast: Wave Analysis Promises a Bottom
Meanwhile, wave analysis of the same daily timeframe gives optimistic signals. Its results suggest that the price of SOL will make a bullish breakout of the resistance line and continue to rise towards the next resistance level at $26.
It seems that the price has completed the formation of the corrective structure A-B-C (black), which began on April 15. The correction is confirmed by the overlap of the low of wave A and the current maximum (red line).
Thus, if this analysis is correct, then the market started rising on June 10 (white) and will eventually break through the resistance line. In this case, the token is likely to reach the next resistance at $26.
Despite this bullish outlook, a drop and close of afternoon trading below the $17 support area would mean that the trend is still bearish. In this case, the price of SOL may drop to $10.
