Solana (SOL) worth has been on a free-fall since December 03 shedding roughly 39% in direction of the vary low at $149.173. The looks of an engulfing the bullish V-shaped chart sample on the every day chart factors to a potential upswing in direction of $244. On the time of writing, Solana worth is exchanging fingers at $178.
Solana worth V-Formed Restoration Goals For 38% Upswing
SOL price has spelt out a V-shaped chart sample on the every day chart, indicating a pointy restoration. A V-shaped sample is created when an asset falls considerably after which makes a sustained upswing. Though, Solana’s restoration might not be as sharp as a V-shaped restoration would counsel as a result of it has been consolidating under the 100-day Easy Transferring Common (SMA) since December 16. However the technical outlook means that Solana worth could proceed the uptick and full the V-shaped restoration.
As such, if SOL worth breaks above the 100-day SMA at $185 it could rise to tag the December 02 vary excessive round $244, representing a 38% rally from the present worth.
However earlier than reaching this goal, Solana bulls have to beat important resistance posed by the 200, psychological degree, 50 SMA at 208 and the $221 main resistance degree.
The bullish narrative has been strengthened by a purchase sign from the Transferring Common Convergence Divergence (MACD) indicator. This occurred when the 12-day Exponential Transferring Common (EMA) crossed above the 26-day EMA earlier on December 18. Notice that the bullish momentum will achieve extra traction as quickly because the MACD crosses the zero line into the constructive area.
SOL/USD 4-Hour Chart
The power of the bullish momentum can also be illustrated by the Relative Power Index’s (RSI) motion away from the oversold areas. A break above the midline will initiated extra purchase orders which might be anticipated to propel Solana worth in direction of the goal of the prevailing chart sample earlier than overbought situations come into play.
Wanting Over the Fence
On the flipside, a every day closure under the instant assist at $173 could set off huge promote orders triggering one other downswing. If this occurs, Solana price might re-test the assist at $161 and the December 13 vary low at $149.
Disclaimer
The offered content material could embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.
About Creator
