Solana Fighting to Hold the ‘Key’ Support: Will SOL Price ‘Make it or Break it’?
The post Solana Fighting to Hold the ‘Key’ Support: Will SOL Price ‘Make it or Break it’? appeared first on Coinpedia Fintech News
After a brief upswing, the Solana (SOL) price has begun with a decent consolidation. One of the reasons could be the buyer’s exhaustion, as the volume remains relatively low. Besides, the sellers also seem to be uninterested in extracting the profits, as the price levels have stuck within a range above the key support. The upcoming couple of hours can be treated as pretty important, as they may decide the dominance of either the bulls or the bears.
The SOL price underwent a giant rally in the last quarter of 2023, due to which the bulls have remained largely passive since the start of the year. Despite a short-term bounce, the price failed to pierce through the interim highs, which caused the token to face a significant pullback. Unfortunately, the excessive upward pressure has dragged the price close to the key support, which may cause more harm if the bulls fail to defend the levels.
What’s next for the SOL price? Can the bulls trigger a rebound and lift the price above $120 this month?
As observed from the above chart, it appears that the SOL price continues to trade under a bullish influence and is approaching the apex of the ascending triangle. But the recent consolidation has opened the doors for the bears. The price is trading very close to the ascending support, which also coincides with the middle band of the Bollinger bands. A rejection from the upper band was the first bearish signal that could be validated if it plunges below the current support.
On the other hand, the MACD is about to undergo a bearish cross-over, which suggests the bears could soon take over the rally as the buying pressure has dropped significantly. Therefore, the next couple of hours can be termed vital, as a slight rise in the bearish action may hinder the growth of the rally and compel it to drop to the interim support close to $90. However, minor chances of a rebound within the bands do exist but with a lower volume, it appears unlikely.
Therefore, the Solana (SOL) price may certainly test the interim support below $100 in a day or two before the bulls jump into rescue and initiate a fresh bull upswing to reclaim the lost levels.
Filed under: Bitcoin - @ February 20, 2024 6:15 am