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- 1 Solana Price sustained above 50 day EMA but failed to breakout of the 200 day EMA
- 2 SOL price consolidate in the narrow range and forming long term base
- 3 SOL crypto technical indicators are mild bearish but the price action is still bullish
Solana (SOL) coin price had shown a meaningful recovery from the recent 52 week low at $8.00 but later prices lacked the follow up momentum and entered into the narrow range consolidation which can also also be interpreted as a long term base creation. Currently, SOL/USDT is trading at $23.00 with an intraday loss of 1.08% and the 24-hour volume to market cap ratio at 0.0454
SOL price prepares for another phase of rally?
Solana (SOL) crypto price is in the short term uptrend and rising upward by forming a bullish continuation pattern which shows that the investors are gaining some confidence and prices seem to be returning back to the bullish track. In the mid of January, SOL prices managed to climb above the 50 day EMA which has triggered the positive sentiment and prices rallied 68% approx in the short period of time. However, prices took halt at the $27.00 and entered into the narrow range consolidation also shows that bears are trying their best to keep the prices below the 200 day EMA which will act as an immediate hurdle for the bulls. On the other hand, if bulls succeed to push the price above the $27.00 hurdle then SOL prices will begin the journey to reach the $38.00 mark.
Meanwhile,The SOL prices sustained above the 50 day EMA shows that the short term trend is still favoring in the direction of bulls and any minor correction from the supply zone will have a high probability of bouncing back from the support zone at $16.00. According to technical analysis, SOL prices are consolidating in the narrow range which is to be considered as a long term bottom formation and responsive buyers seem to have a strong grip at $16.00 to $20.00 level.
The technical indicators of the Solana coin like MACD had generated a negative crossover but the curve is tilting sideways indicating prices are expected to remain in consolidation for some more time whereas the RSI at 49 denotes the equal level of tug of war between buyers and sellers.
Summary
Solana (SOL) crypto price is in recovery mode and bulls are trying their best to keep the price above the 50 day EMA. However, if the overall market sentiment turned negative then we might short term correction in SOL prices and bears might try to drag it down below the $20.00 level but technical analysis suggests that the $16.00 will act as a strong demand zone and probability of bouncing back from the support level remains high.
Technical levels
Resistance levels : $27.00 and $38.00
Support levels : $16.00 and $8.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
